1973 (6) TMI 5

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..... law in holding that the capital gains derived by the assessee on relinquishment of his share in Malabar Fisheries Co. is exempt under section 47(ii) of the Income-tax Act, 1961 ?" - question that has been referred to us must, therefore, be answered in the affirmative, i.e., in favour of the assessee and against the revenue
Judge(s) : P. GOVINDAN NAIR., GEORGE VADAKKEL. JUDGMENT The judgment .....

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..... s took over the assets of the firm and the assessee was paid in lieu of his share in the assets of the firm Rs. 3,81,082. The Income-tax Officer found that the amount paid to the assessee as his share in the assets of the firm was in excess of the amounts to his credit in the capital and current account of the firm, and his share in the reserve credit in the firm, by a sum of Rs. 43,673. On the ba .....

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..... accepted by the Tribunal. So the question is whether this view is correct. Section 47(ii) is in these terms: "Nothing contained in section 45 shall apply to the following transfers: . . . . (ii) any distribution of capital assets on the dissolution of a firm, body of individuals or other association of persons." Counsel for the revenue invited our attention to the decision of the Supreme Cour .....

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