1987 (12) TMI 11

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....OCHU THOMMEN J.-These writ appeals arise from the common judgment in 0. P. Nos. 3444 and 3445 of 1979 (K. N. Narayanan v. ITO [1984] 145 ITR 373 (Ker) ). The learned judge dismissing the petitions challenging the order made by the Commissioner of Income-tax under section 264 of the Income-tax Act, 1961, held that, in respect of the shares in question, there was a sale and a resale, and consequentl....

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....ittedly sold before that date. The last paragraph in exhibit P-1 reads : " The vendor hereby assures the purchaser that the other shareholders referred to in the schedule hereunder have agreed with and have authorised the vendor to sell their shares also to the purchaser or its nominees and that the vendor will obtain their letters of consent and authority or such other documents for the purpos....

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.... This shows that the sale of the shares was conditional upon the vendor obtaining the necessary sanction of the Government of India and other authorities. It is not in dispute that such sanction had been duly obtained in respect of the shares in question and they were accordingly sold before March 31, 1979. The final part of the paragraph set out above, however, provided that in the event of fa....

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....roperty of the vendor. The returns filed by the assessees showing capital gains was a genuine mistake. The assessees have not understood that the sale, being conditional, had not, and could not have, taken place until the last of the shares had been sold on obtaining the necessary sanction of the authorities. This argument was not accepted either by the Commissioner or by the learned judge, and, i....