V.Ramaswami, J.

1. In this case the assesses, Maharajadhiraj of Darbhanga, floated a private limited company called "The Newspapers and Publications Limited" (hereinafter referred to as the Company) having an authorised capital of Rs. 25,00,000.00 made up of 25,000 shares of Rs. 100.00 each. The first paragraph of the Memorandum of Association of the Company states as follows: -

"As a first operation to acquire, purchase, take over or agree to take over by private treaty or in any other lawful manner whosoever as a going concern the undertakings now being carried on under the names and styles of the "Indian Nation" and the Aryavarta newspapers and the Indian Nation Press along with all or any of the stock-in-trade, rights, assets, interests, liabilities and obligations of the said undertakings with all their advantages, goodwill, licenses and privileges as standing on ...... and pay for such rights and privileges in cash or in shares or partly in cash and partly in shares of the company (as may be agreed upon between the parties), and to carry on the said business along with other business mentioned in the other succeeding sub-Clauses of this clause of the Memorandum of Ass