P.S. Kalsian, A.M. - (1.) THESE two appeals filed by the Department are disposed of by a common order for the sake of convenience. ITA No. 2627/A11/1992, Asst. yr. 19901
(2.) The appeal is directed by the Revenue against the order of the CIT(A) dt. 18th Oct., 1992. The following grounds of appeal have been taken : "1. That the CIT(A) erred in law and on facts in deleting the addition of Rs. 37,25,432 following the Madras High Court's decision in CIT v. Indian Overseas Bank and Anr. (1990) 182 ITR 439 (Mad) whereas the facts of the case were not identical. Moreover, the assessee-company has succeeded the firm's lock stock and barrel basis' as a going concern and receipt expenses relating to pre-succession period has actually been received in the hands of successor in business only during the previous year relevant to assessment year under consideration." The facts of the case are as follows : The partnership firm, M/s Jagaran Prakashan, Varanasi has been carrying on business as publishers of daily newspaper, namely, "Dainik Jagran". By an agreement dt. 31st March, 1989, the business of publishing the newspaper was transferred by the partnership-firm, M/s Jagran Prakashan, Varanasi to M/s Jagran Prakashan, (Varanasi) (P) Ltd., a private limited company limited by shares, with the registered office at 7, P.D. Tandon Road, Allahabad.
(3.) M/s Jagran Prakashan (Varanasi) (P) Ltd. was incorporated on 23rd Dec., 1988. This assessee-company has subscribed capital of Rs. 10 lakhs (1 lakhs shares of Rs. 10 each). Issued and paid up capital of the assessee-company as on 31st March, 1990 was Rs. 3,000 (300 shares of Rs. 10 each). There were only three shareholders of the assessee-company as on 31st March, 1990, namely, Vinod Kumar Gupta (100 shares), Sunil Kumar Gupta (100 shares) and Sandeep Kumar Gupta (100 shares.);