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TMI Blog1984 (9) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... Laxmidas Ramji Thakkar and the document states that he had obtained the conveyance as promoter of a company to be floated in the name Bharat Pottery & Chemical Works Ltd. It would appear that there was a mistake in the description of the Hissa numbers and to correct the same, a deed of rectification was brought forward on 29-10-1948. The consideration for the sale was Rs. 28,000. The company was incorporated on 4-4-1949. By a resolution dated 12-5-1949, the company had accepted the purchase made by the promoter, Laxmidas Ramji Thakkar. For a reason, the company had come to bear the name Navbharat Potteries & Chemical Works. Laterly, it was formed into a private limited company known as Navbharat Potteries (P.) Ltd. For the purpose of wealth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersed and we may straightaway say that the contention raised on behalf of the assessee that this property was throughout an asset of the assessee even earlier to the document dated 13-2-1970, was accepted. This finding is cavilled at by the revenue in the instant appeal. 5. It was argued on behalf of the revenue by Shri Agarwal, the learned departmental representative, that regard being had to the tenor of the deed dated 13-2-1970, which purports to convey right, title and interest in praesenti to the transferee (the assessee), it must be concluded that the assessee acquired legal ownership for the first time in 1970, justifying computation of capital gains in the manner did by the ITO. The rejoinder of the counsel on the other side was th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all his earlier actions were ratified and taken into account of the company. The company could not be given the name Bharat Potteries & Chemical Works Ltd., as originally proposed. But, however, with little modification, the name Navbharat Potteries & Chemical Works Ltd. was adopted. It was mentioned at the bar that this slight change became necessary at the instance of the authority connected with incorporation. The concern was, subsequently, formed into a private limited company. Although there was a change in the nomenclature of the company, as stated in the deed of purchase of 1948 and the actual name in which it was incorporated, it can be seen that there was no change of the legal persona. For 1957-58 assessment, the assessee had sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 13-2-1970, then there was no transfer of asset on 13-2-1970 within the meaning of section 2(47) of the Income-tax Act, 1961, for nothing was acquired by the deed of even date. For various reasons, a formal document by the ostensible owner may have to be obtained and in this case, the assessee had litigation with a trespasser (Panama (P.) Ltd.) and to keep the matter beyond dispute, a formal deed of transfer had been obtained by the assessee on 13-2-1970 in view of the advice given by its legal advisor. Such documents are no more than to clear the blurred image, if any, on record and to express the document dated 13-2-1970 in any other way would be to ignore the equitable ownership the assessee had. Equitable ownership cannot altogether be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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