9911796707
TMI Blog1997 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... urt was delivered by S. C. AGRAWAL J.--This appeal by certificate is directed against the judgment of the Gujarat High Court dated August 29, 1980. The matter relates to the assessment year 1967-68. The assessee is a partnership concern consisting of 13 partners. On March 31, 1966, it entered into an agreement whereby it transferred the entire assets of business together with liabilities as a going concern to a limited company, styled Electric Control Gear Pvt. Ltd., for a consideration of Rs. 8 lakhs. The erstwhile partners of the assessee-firm were allotted the shares of the same value in their profit sharing proportion. The Income-tax Officer held that depreciation allowed to the assessee-firm amounting to Rs. 3,32,863 in respect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the correct status of the assessee should be "registered firm" and not "association of persons". The Tribunal referred the following questions for the opinion of the High Court : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the principle of mutuality was not applicable ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions of section 41(2) were applicable ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee has earned capital gains, which was liable to tax under the provisions of section 45 of the Income-tax Act, 1961 ? 4. Whether, on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n its judgment in Artex Manufacturing Co. v. CIT [1981] 131 ITR 559 (Guj). The said judgment of the High Court has been considered by us in our judgment pronounced today in C. A. No. 2276 (NT) of 1981, CIT v. Artex Manufacturing Co. [1997] 227 ITR 260 (SC). In that case, we have held that section 41(2) was applicable, since the price attributable to the plant, machinery and dead stock which were transferred had been disclosed by the assessee during the course of assessment proceedings before the Income-tax Officer and that the said price was as per the value assessed by the valuers at the time of execution of the agreement. In the present case there is nothing to indicate the price attributable to the assets like the machinery, plant or bui ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
