9911796707
TMI Blog1996 (7) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... 973-74) and Shrimati Kaushalya Devi (for the assessment years 1973-74 and 1974-75) : "Whether, on the facts and in the circumstances of the case and in law, the Appellate Tribunal was right in holding that the applicant was not entitled to exemption under section 5(1)(xx) of the Wealth-tax Act, 1957, in respect of 250 shares of Avery Cycle Industries Pvt. Ltd., acquired on March 31, 1970 ?" The facts giving rise to these references are as follows : Shrimati Kamla Kumari was an assessee under the Act. She claimed exemption in respect of equity shares of Avery Cycle Industries Pvt. Ltd., under section 5(1)(xx) of the Act. She had purchased 30 equity shares of that company on July 26, 1968, and 250 shares on March 31, 1970. The Wealth-tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) of section 45, where such shares form part of the initial issue of equity share capital made by the company after the 31st day of March, 1964, but before the 1st day of June, 1971, for a period of five successive assessment years commencing with the assessment year next following the date on which such company commences the operations for which it has been established ;" A bare reading of the above exemption clause makes it clear that three conditions, as under, are required to be fulfilled for claiming the benefit ; (1) Equity shares in any company are qualified for exemption if such company is of the type referred to in clause (d) of section 45 of the Act ; (2) such shares should form part of the initial issue of the equity share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initial issue of equity shares should be made by the company between April 1, 1964, and May 31, 1971. In this case, equity shares purchased by the assessee were issued within the aforesaid period. In order to see whether any shares are part of the initial issue of share capital, it has to be found out as to when the company resolved for the first time upon its issued share capital. Thereafter, it has to be further seen whether the particular shares emanated from that issue either by allotment or otherwise. Any increase in the subscribed capital by issue of new shares is within the competence of the board of directors and is governed by the provisions of the Companies Act, 1956. The board may, in its discretion, increase the subscribed capi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
