1984 (9) TMI 86

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.... deed of sale dated 22-5-1948 by one Laxmidas Ramji Thakkar and the document states that he had obtained the conveyance as promoter of a company to be floated in the name Bharat Pottery & Chemical Works Ltd. It would appear that there was a mistake in the description of the Hissa numbers and to correct the same, a deed of rectification was brought forward on 29-10-1948. The consideration for the sale was Rs. 28,000. The company was incorporated on 4-4-1949. By a resolution dated 12-5-1949, the company had accepted the purchase made by the promoter, Laxmidas Ramji Thakkar. For a reason, the company had come to bear the name Navbharat Potteries & Chemical Works. Laterly, it was formed into a private limited company known as Navbharat Potterie....

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.... assessee, the finding of the ITO was reversed and we may straightaway say that the contention raised on behalf of the assessee that this property was throughout an asset of the assessee even earlier to the document dated 13-2-1970, was accepted. This finding is cavilled at by the revenue in the instant appeal. 5. It was argued on behalf of the revenue by Shri Agarwal, the learned departmental representative, that regard being had to the tenor of the deed dated 13-2-1970, which purports to convey right, title and interest in praesenti to the transferee (the assessee), it must be concluded that the assessee acquired legal ownership for the first time in 1970, justifying computation of capital gains in the manner did by the ITO. The rejoin....

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....by Laxmidas Ramji Thakkar had been accepted and all his earlier actions were ratified and taken into account of the company. The company could not be given the name Bharat Potteries & Chemical Works Ltd., as originally proposed. But, however, with little modification, the name Navbharat Potteries & Chemical Works Ltd. was adopted. It was mentioned at the bar that this slight change became necessary at the instance of the authority connected with incorporation. The concern was, subsequently, formed into a private limited company. Although there was a change in the nomenclature of the company, as stated in the deed of purchase of 1948 and the actual name in which it was incorporated, it can be seen that there was no change of the legal person....