Judgment

BHARGAVA, J. : This appeal by certificate granted by the High Court of Bombay under S. 66A (2) of the Indian Income-tax Act, 1922 (hereinafter referred to as "the Act") is directed against the answer returned by the High Court to the following question referred to it by the Income-tax Appellate Tribunal under S. 66 (1) of the Act:-

"Whether, having regard to the provisions of S. 12B (2) (ii), the assessee is entitled to claim a deduction from the full value of the consideration of Rs. 45,262.30 nP received for the capital asset, the sum of Rs. 37,630 or any similar sum ?"

2. The case arose out of proceedings for assessment of the appellant for the assessment year 1957-58, the corresponding previous year being the financial year 1956-57. The appellant was holding 710 ordinary shares of the Tata Iron and Steel Company Ltd. (hereinafter referred to as "the Company"), which she had inherited some time prior to 1st January, 1954, as an investment. It was admitted that she was not a dealer in shares. Under a special resolution passed at an Extraordinary General Meeting of the Company on 12th March 1956, the appellant, as holder of 710 ordinary shares, become entitled to purchase ne