Judgment

SABYASACHI MUKHARJI, JJ.

( 1 ) THESE appeals are by certificates granted by the High Court of Madras under Article 133 (1) of the Constitution.

( 2 ) AN identical question of law. had been referred in respect of four separate tax cases to the High Court under S. 66 (1) of the Income-tax Act, 1922 (hereinafter referred to as 1922 Act) at the instance of the assessee. The High Court disposed of these appeals by one common judgment.

( 3 ) THE High Court had to answer the following question :

"whether on the facts and in the circumstances of the case, the conclusion of the Tribunal, that for the purpose of the computation of capital gain on the sale of the shares in East India Corporation Ltd. , Madura Insurance Company Ltd. and Pudukottah Company Private Ltd. the first proviso to sub-sec. (2) of Sec. 12b of the Income-tax Act, 1922 was applicable, is correct in law?"

( 4 ) THE High Court answered the question in the negative and in favour of the assessee.

( 5 ) ACCORDING to the High Court in the instant case, the shares held by the assessee company were sold to two persons who were directly or indirectly connected with them at prices considerably less than their break-up value.

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