1987 (12) TMI 11

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..... ls arise from the common judgment in 0. P. Nos. 3444 and 3445 of 1979 (K. N. Narayanan v. ITO [1984] 145 ITR 373 (Ker) ). The learned judge dismissing the petitions challenging the order made by the Commissioner of Income-tax under section 264 of the Income-tax Act, 1961, held that, in respect of the shares in question, there was a sale and a resale, and consequently income arose under the head " .....

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..... last paragraph in exhibit P-1 reads : " The vendor hereby assures the purchaser that the other shareholders referred to in the schedule hereunder have agreed with and have authorised the vendor to sell their shares also to the purchaser or its nominees and that the vendor will obtain their letters of consent and authority or such other documents for the purpose and furnish the same to the purcha .....

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..... es was conditional upon the vendor obtaining the necessary sanction of the Government of India and other authorities. It is not in dispute that such sanction had been duly obtained in respect of the shares in question and they were accordingly sold before March 31, 1979. The final part of the paragraph set out above, however, provided that in the event of failure to sell the totality of shares, be .....

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..... y the assessees showing capital gains was a genuine mistake. The assessees have not understood that the sale, being conditional, had not, and could not have, taken place until the last of the shares had been sold on obtaining the necessary sanction of the authorities. This argument was not accepted either by the Commissioner or by the learned judge, and, in our view, rightly. On a careful examina .....

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..... ir subsequent conduct in filing the returns showing capital gains arising from the sale of the shares in question here. In the circumstances, the Commissioner rightly found that the assessees who are the, appellants here made no mistake in filing the returns and the concerned officer made no mistake in assessing them in respect of the amounts returned. The learned judge has also so found and we ar .....

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