Judgment

KHANNA, J. :- This appeal on certificate is against the judgment of Gujarat High Court whereby the High Court answered the following question referred to it under Section 256 (1) of the Income-tax Act, 1961 (hereinafter referred to as the Act of 1961) in favour of the assessee-respondent and against the revenue :

"Whether on the facts and in the circumstances of the case, there was a transfer of a capital asset within the meaning of Section 45 read with Section 2 (47) of the Income-tax Act. 1961"?

2. The matter relates to the assessment year 1962-63, for which the accounting previous year was calendar year 1961. The assessee who is an individual held 192 shares of Kawelongoji Ginneries Ltd., Kampala, a private limited company incorporated in Uganda (hereinafter referred to as the Uganda company). Those shares were acquired by the assessee sometimes before January 1, 1954 and he paid Sh. for each share. The amount thus paid by the assessee for the 102 shares was Sh. 1,92,000 equivalent to Rs. 1,28.000. The said company went into voluntary liquidation as per special resolution dated July 10, 1961. The liquidators sold the assets of the company in due course and the liquidators