9911796707
TMI Blog1982 (7) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... yr. 1975-76, a notice under s. 16(1) of the GT Act, 1958 was served on the assessee. In response to this notice, the assessee filed a return of gift admitting 'Nil gift. According to the facts of this case, the assessee was running a business in the name M/s Raj Mineral Works, Sanathnagar, Hyderabad. For the year under consideration, the assessee converted the business into a partnership by takin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hands of the assessee. Since the AAC was also of the view that the parting of 25 per cent of income from her business in favour of the minor son was without consideration, he came to the conclusion that the order passed by the GTO was in order. Not satisfied with the order passed by the AAC, the assessee filed the present appeal before the Tribunal challenging the order passed by the AAC. 4. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturing the Silica Sand. She has converted the proprietary business into partnership w.e.f. 1st July, 1974 as per partnership deed dt. 1st July, 1974 in which she became a partner sharing 50 per cent of profits and 75 per cent in losses and Shri Anand Raj Singh, a major son became a partner with 25 per cent share in profits or losses and Shri Prafullaraj Singh, a minor son was given benefits in pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the benefits of the partnership with the consent of all the partners and, therefore, it could not be said that when there was a reconstitution consequent to admission of minors there would be a transfer of property within the meaning of s. 2 (xxiv) of the GT Act. But, however, in the case of CGT, Gujarat-I vs. Chhotalal Mohanlal (1974) 97 ITR 393 (Guj), the Gujarat High Court had specifically h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to any transaction with them and, therefore, the provisions of s. 2 (xxiv) (d) would not apply. By respectfully following the said order of the Tribunal and also the ratio of the decision of the Gujarat High Court as reported in (1974) 97 ITR 393 (Guj) we also hold that when the minor was admitted to the benefits of partnership with the consent of the remaining partner there is no transfer of prop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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