9911796707
TMI Blog2009 (11) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) – ITAT deleted the addition – revenue submitted that neither registration was done with the competent authority under the rovisions of Motor Vehicle Act, nor the partner to whom sale was made was earlier partner of the earlier firm. She became partner only two days before the sale – held that - Even though there may be substance in the submissions made, having regard to the fact that the matter relates to period of more than 20 years ago and the amount is not substan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer held that by transferring the harvestor to the partner and thereafter to another firm of which the said partner 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). This order was upheld by CIT (A) but the Tribunal reversed the addition by holding that the transaction was not a device but genuine. It was further held that capital gains were required to be added in the hands of the second f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and capital gains, if any, were to be assessed in hand hands of M/s S.V. harvestor Co. for assessment year 1986-87. In either view of the matter, so far as assessment year 1986-87 in the case of the assessee firm is concerned, there was no warrant for assessing profit u/s 41 (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 Motor Vehicle Act, nor the partner to whom sale was made was earlier partne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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