9911796707
TMI Blog2014 (5) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... lways applicable to individual firm and stock thereunder is not transferable unless treated to be sale - Admittedly, the assessee accepted compounding in season 1999-2000 and for season 2000-01 it claims that business was taken by M/s Rajvir Brick Field, which also accepted compounding for next seasons, i.e., 2000-01 - However, the stock which remained with assessee after completion of season 1999-2000 and passed on to next season, in respect thereof it was incumbent upon assessee to go for compounding or to show the same in his records properly but taking advantage of compounding accepted by a different firm, tax liability in respect of such stock could not have been denied - The Revenue has rightly treated transfer of stock to M/s Rajvir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 31st March of the next following year while brick kiln season for compounding commences on 1st October and ends on 30th September of the next following year. 5. Thus, two assessment years would touch in one compounding season of brick kiln. 6. In the present case we are concerned with assessment year 2000-01, in particular the period from 01.10.2000 to 31.03.2001. The assessee took the stand that he closed his business on 30.09.2000 by communication, acknowledged on 19.10.2000 and transferred brick kiln to M/s Rajvir Brick Field. 7. During season 1999-2000 (01.10.1999 to 31.09.2000) assessee was under compounding scheme for which order was passed on 30.09.2000. The subsequent firm M/s Rajvir Brick Field was also in compounding f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated to be sale. Admittedly, the assessee accepted compounding in season 1999-2000 and for the season 2000-01 it claims that business was taken by M/s Rajvir Brick Field, which also accepted compounding for next seasons, i.e., 2000-01. However, the stock which remained with assessee after completion of season 1999-2000 and passed on to next season, in respect thereof it was incumbent upon assessee to go for compounding or to show the same in his records properly but taking advantage of compounding accepted by a different firm, the tax liability in respect of such stock could not have been denied. The Revenue has rightly treated transfer of stock to M/s Rajvir as sale on the part of assessee in an assessment year when there was no compoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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