The monetary policy process was demystified and central bank communications marked a perceived shift towards transparency. During his tenure efforts were made to develop the money markets and new instruments were introduced. The Discount and Finance House of India, the National Housing Bank were set up and the Indira Gandhi Institute of Development Research inaugurated. crochet c2c rectangle In the field of rural finance, the Service Area Approach was adopted as an approach catalyse the flow of credit through commercial banks. His stewardship of the Imperial Bank won him recognition in banking circles in India. However, his outlook on policy issues like the exchange rates and interest rates was at variance with that of the Government.
His second term came to an end with his sudden demise. Sir Osborne Smith was the first Governor of the Reserve Bank. A professional banker, he served for over 20 years with the Bank of New South Wales and 10 years with the Commonwealth Bank of Australia before coming to India in 1926 as a Managing Governor of the Imperial Bank of India. It may be noticed that in all these cases, referred to by Mr. Pal, there was absolutely no other consideration other than the motive for profit. The letter of August 9, 1960, was from Dr. Sarabhai to Dr. Ghosh.
The new shares were acquired and parted with by the assessees, it was stated, only to fulfil the requirements of the purchasers. These facts may now be applied to the test laid down by the Supreme Court in the case of G. Venkataswami Naidu & Co. v. CIT 35 ITR 594.
According to the Tribunal, a reading of the letter dated 18th June, 1960, in the background of the directors’ resolution of the 19th February, 1960, showed the intention of Dr. Ghosh to secure financial collaboration for the company and to pass on to the Sarabhais the controlling interest in the company. The Tribunal held that from the letter it was clear that it was made known to the Sarabhais that the existing shares held by the assessee were less than the number of 6 lakhs shares which Dr. & Mrs. Ghosh had offered to give to the Sarabhais. According to the Tribunal, it was, therefore, manifest that to pass on the stipulated number of shares the assessees would have to obtain new shares. The latter, in the view of the Tribunal, could be taken as showing that the assessees did not intend to hold the new shares, which they would have to acquire to fulfil the deal.
All e-mails from the system will be sent to this address. The e-mail address is not made public and will only be used if you wish to receive a new password or wish to receive certain news or notifications by e-mail. Shri Shaktikanta Das has vast experience in various areas of governance in the last 38 years. Shri Das has held important positions in the Central and State Governments in the areas of Finance, Taxation, Industries, Infrastructure, etc.
A company, viz., Sarabhais, was found which could provide the requisite financial collaboration. Sarabhais, however, insisted on acquiring the controlling interest. It was, therefore, found impossible for the Ghoshes to sell to the Sarabhais their existing shares unless they could pass on to the Sarabhais the controlling interest of the company. In this context, the assessee floated new shares and bought them so as to secure an approval of Sarabhais, as desired by them, the controlling interest in the company. It was also found that it was not a part of the assessee’s ordinary business to make investment in shares. It was apparent, therefore, that there might be profit motive but it was not a sole or dominant motive.
This represented the largest arrangement in IMF’s history at the time. During his tenure, social controls over commercial banks were introduced as an experiment in 1968, as a part of which a National Credit Council was established. Shortly thereafter, 14 major commercial banks were nationalised in 1969, a step which did not have the endorsement of the Reserve Bank. His tenure witnessed the commencement of the Planning Era as well innovative initiatives in the spheres of co-operative credit and industrial finance. The recommendations of the All India Rural Credit Survey Committee appointed during his tenure led to the transformation of the Imperial Bank of India to State Bank of India.
The submission of the learned counsel was that there was no element of trade in the transaction and only the base with reference to which a fixed return could be had was broadened.” Dr. Subbarao has wide experience in public finance. In the World Bank, he worked on issues of public finance in countries of Africa and East Asia. He managed a flagship study on decentralisation across major countries of East Asia including China, Indonesia, Vietnam, Philippines and Cambodia. Dr. Subbarao was also involved in initiation of fiscal reforms at the state level. Dr. Subbarao has written extensively on issues in public finance, decentralisation and political economy of reforms.
There were also sales of 29,600 equity shares. These, the ITO held, were acquired and sold in September, 1960, and the surplus was assessable as income from business. The quantum assessed is not in dispute. In the case of Dr. Ghosh, the ITO accepted that the surplus arising out of the sale of 1,145 equity shares, acquired prior to 1944, and 14,000 deferred shares, acquired prior to 1946, represented capital gains. There were also sales by Dr. Ghosh of 20,000 equity shares which it is stated in the assessment order were acquired in September, 1960, and sold a few days thereafter. The surplus from such sales was assessed as business income.