1983 (4) TMI 1

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..... a partnership firm known as Oriental Enterprises. The assessee was the owner of property at No. 20, G. N. Chetty Road, Madras. During the previous year relevant to the assessment year 1976-77, the assessee made a declaration to the effect that the property situate at No. 20, G. N. Chetty Road, will thereafter be the property of the firm, Oriental Enterprises. The consideration agreed to was Rs. 1, .....

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..... Commissioner. The Appellate Assistant Commissioner accepted the contention of the assessee and held that the assessee was not liable to tax on capital gains since the transfer was not effected through a registered document, that the declaration executed by the assessee on stamp paper of the value of Rs. 5 followed by mere book entry could not effectively transfer the title of the property, that i .....

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..... o transfer involved in the conversion of individual property into partnership property and that there cannot be any valid transfer in the absence of a registered sale deed. Aggrieved by the view taken by the Tribunal, the Revenue is seeking a direction in this reference petition to the Tribunal to refer the following question for the opinion of this court : " Whether, on the facts and in the circ .....

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..... of a registered document, there could be no valid transfer of the property from the assessee to the partnership, we are not going to make an order for reference. Admittedly, the property said to have been transferred is valued between the parties at Rs. 1,20,000. For the transfer of a property which is worth more than Rs. 100, a stamped and registered document of transfer is necessary under the p .....

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..... transfer of immovable property and hence no liability to tax on capital gains, we are not expressing any opinion on the finding of the Tribunal that conversion of individual property into partnership property does not involve transfer of property. In this view of the matter, we do not see any justification for directing a reference in this case. The tax case petition is dismissed. No costs.
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