- (1.) ON a Misc. Appln. No. 44 of 1999 in DB IT Ref. No. 33 of 1983, this Court has recalled its main order dt, 20th Jan., 1995, which includes the order dt. 11th July, 1995, whereby some correction has been made in the order dt. 20th Jan., 1995. After recalling the order dt. 20th Jan., 1995, we hear this reference afresh.
(2.) IN the reference under Section 256(1), the Tribunal has referred the following questions for our opinion: 'Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that scope of assessments made by the ITO in pursuance of the directions issued under Section 250 of the IT Act by the AAC was limited and the ITO was not competent to include in the taxable income the amount of Rs. 4,29,593 when at the time of original assessment, the same was not included?' 'If the answer to the above question is in the negative, whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition of Rs. 4,29,593 made by the ITO on account of profit after the amalgamation of the companies by adopting the cost of the shares in the trading account at Rs. 5,33,333 against the value of the closing stock thereof at Rs. 11,26,923 taken by the assesses?' There were two companies, viz., Shree Vijay Laxmi Trading Co. Ltd., Pali and the Eastern Trading Syndicate (P) Ltd., which were amalgamated with the assessee -company during the relevant previous year.
(3.) THE assets worth Rs. 8,19,418 of Shree Vijay Laxmi Trading Company Ltd. were taken over and against that shares of the value of Rs. 5,00,000 were issued to the amalgamating company. The balance of Rs. 3,19,418 was transferred by the assessee -company to the credit of its capital reserve account.;