ORDER

1. The order of the Tribunal states that clause 4(ii) of the agreement dated 27 -11-1962 between Lucas, the English company, and the respondent would show that the purchase price of the plant and machinery, which had been advanced to the respondent by Lucas (England), would be satisfied with the 9 issue by the respondent to Lucas (England) of its equity shares at par with an equivalent value. The question that arose, therefore, was whether the said agreement had created any debt towards the supply of plant and machinery by Lucas (England). The Tribunal took the view that the obligation of the respondent in respect of the price of the plant and machinery had to be satisfied by the issue of the respondents share to Lucas (England). The view of the Tribunal was upheld by the High Court and the Revenue is in appeal.

2. It was contended by learned counsel for the Revenue that on the relevant date, for the purpose of Section 80-J of the Income Tax Act, the shares had not been allotted by the respondent to Lucas (England) and that the value thereof had shown in the respondents balance-sheet. In his submission, therefore, there was a debt and it had to be taken into account for the p