9911796707
TMI Blog1979 (2) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction was taxable as part of the total income of the firm. The ITO was of the opinion that the assessee had purchased the property on 12th June, 1969 and the firm came into existence only by a deed dt. 10th May, 1973 and hence the property could not be the property of the firm. He was of the further opinion that the purchasers were indirectly connected with the assessee and he came to the conclusion that the transfer was effected with the object of avoidance and reduction of the liability of the assessee. He was of the further view that the transfer having taken place within sixty months, the capital gains should be treated as short term capital gains and taking the market value of Rs. 60,000 and deducting the cost of acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e firm M/s Sree Kamalalaya Co., which he joined on 28th April, 1964 and which was reconstituted on 15th Oct., 1969, 13th May, 1971 and 10th May, 1973. At the time of reconstitution on 10th May, 1973, the name of the firm was changed from M/s Sree Kamalalaya Co. to Jaichand Lal Bhura Co. but carrying on the same business with the same assets and liabilities. The copy of the account of the partner shows that on 24th Oct., 1969 he brought the value of the property as his capital and thereafter depreciation was claimed by the firm and allowed in the assessments for the years 1970-71 to 1973-74. In the asst. yr. 1974-75, corresponding to the R.N. 2030, the proceeds of the sale of this property was also brought into the books of the firm an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imate test as what is and what is not partnership property must still be the agreement of partners as it is competent for partners by agreement amongst themselves to covert what is the joint property of all into the separate property of some one or more of them, and vice versa. Hence it is that an immovable property which stands in the name of one of the partners has to be regarded as that of the firm as long as the partners agree to treat it as such. 8. In the present case, the treatment of the sale proceeds as the income of the firm in its accounts which followed the claim of the firm and the granting of depreciation in the assessments of the several years preceding the sale clearly indicate the agreement of the partners to treat this p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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