IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No 215 of 1990 For Approval and Signature: Hon'ble MR.JUSTICE B.C.PATEL and MR.JUSTICE R.R.JAIN ============================================================ -------------------------------------------------------------- MANA SARABHAI TRUST NO. 9 Versus COMMISSIONER OF INCOME-TAX -------------------------------------------------------------- Appearance: Mr R.K.Patel, Advocate for the Applicant. Mr Manish Bhatt, Advocate for the Respondent. -------------------------------------------------------------- CORAM : MR.JUSTICE B.C.PATEL and MR.JUSTICE R.R.JAIN Date of decision: 11/07/96 ORAL JUDGEMENT (Per B.C.Patel, J.) The following question has been referred to this Court under Sec. 256 (1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). "Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that the assessee was not entitled to exemption u/s. 47 (vii) of the Income-Tax Act, 1961 ?" 2. The Assessee was a holder of certain shares in Shahibag Enterpreneurs Private Limited. In view of amalgamation, the assets of this Company as also its liabilities were transferred to another Company viz. Alkapuri Investments Private Limited. As per the scheme, Alkapuri Investments Private Limited was obliged to issue and allot the shareholders of Shahibag Enterpreneurs Private Limited one equity share of the face value of Rs.100/- and two fractional certificate each representing entitlement to 1/10th of one equity share and one 11% redeemable bond of the face value of Rs.100/-. 3. The Tribunal relying on the decision of this Court in the case of Gautam Sarabhai Trust No.31 held that the Assessee is not entitled to exemption under Sec. 47 (vii) of the Act. 4. It is required to be noted that this Court in the case on which the reliance was placed by the Tribunal on a reference has held that the Assessee is not entitled to exemption under Sec. 47(vii) of the Act. [(1988) 173 ITR 216]. Thus, in view of this, the answer is required to be given in favour of the Revenue and against the Assessee. Accordingly, the question is answered against the Assessee and in favour of the Revenue. This reference is disposed of accordingly with no order as to costs. **********