COMMISSIONER OF INCOME TAX Vs. UNITED COMMERCIAL BANK LTD

JUDGEMENT

(1.) RULE was issued on the following question:

(2.) THE facts relating to this application are that the assessee, the United, Commercial Bank Ltd. (in Members' Voluntary Liquidation), was doing banking business being incorporated under the Companies Act, as a public limited company in India as well as outside India. It had three branches in Malaysia. The assessee-company was nationalised and its business was taken over by the Government of India on July 19, 1969. The business in Malaysia was allowed to continue and the foreign business was taken over by the Government on January 1, 1971. The ITO made an assessment on August 23, 1978, but that order was set aside by the CIT (A) on November 13, 1979, with a direction to make a fresh assessment after allowing the assessee a fair opportunity. Accordingly, the ITO, Special Assessment Range-1, Calcutta, passed an order on March 15, 1982. The assessee preferred an appeal from that order before the CIT (A), who passed an order on August 28, 1983.

(3.) IT appears that the Reserve Bank of India wrote a letter to the Chairman, United Commercial Bank Ltd., on March 11, 1971, which reads as follows: