9911796707
TMI Blog2009 (11) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... the instance of the revenue, following question of law has been referred for the opinion of this Court by the Income-Tax Appellate Tribunal, Chandigarh, arising out of its order dated 27.6.1996 in I.T.A. No. 1368/Chandi/1990 relating to assessment year 1986-87:- "(i) Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that profit on sale of combine and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had become partner was just a device and, thus, the harvestor continued to be that of the assessee firm. Income derived from use of the said harvestor combine was required to be added to the income of the assessee, apart from capital gain to be calculated with reference to ultimate sale price. The Assessing Officer added income from running of the combine and profit on sale under Section 41 (2). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 3.4.1984 relevant to assessment year 1985-86. She had already become a partner of M/s S.V. harvestor Co. on 1.4.1984. She in turn transferred the combine to M/s S.V. harvestor Co. in 1984 relevant to assessment year 1985-86. To this extent, there was a device by the assessee firm. But the transfer by Smt. Santosh Sood to M/s S.V. harvestor Co. had taken place in the year relevant to assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) and capital gains in its hands. We, therefor, order the deletion of profit u/s 41 (2) of Rs. 53,817/- and capital gains of Rs. 1,40,602/- from the total income of the assessee. This appeal is partly allowed." 5. We have heard learned counsel for the parties. 6. Learned counsel for the appellant submits that neither registration was done with the competent authority under the rovisions of Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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