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TMI Blog1976 (6) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1922 ? " The short facts which give rise to the above question are as follows : The assessee as an individual was running four proprietary businesses of plying lorries, running an oil mill, running a rice mill and running a cinema house. The total capital of the assessee invested in these businesses amounted to Rs. 30,000 represented by several assets. The assessee admitted his two major sons as partners in these businesses giving them 25% share each and admitted his two minor sons to the benefits of the partnership with 12% share in profits each. The assessee retained to himself the balance of 25% share in the profits and losses of the partnership business. The firm was styled as M/s. Dhanapal Oil and Rice Mill. The par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows : " (2) Such profits or gains shall be computed after making the following allowances, namely :-- (vii) in respect of any such building, machinery or plant which has been sold or discarded or demolished or destroyed, the amount by which the written down value thereof exceeds the amount for which the building, machinery or plant, as the case may be, is actually sold or its scrap value : Provided that such amount is actually written off in the books of the assessee : Provided further that where the amount for which any such building, machinery or plant is sold, whether during the continuance of the business or after the cessation thereof, exceeds the written down value, so much of the excess as does not exceed the difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion of invoking the second proviso to section 10(2)(vii) of the Act. Apart from the above, the second requirement which is involved in the conception of "sale" is also absent in the present case. The Tribunal in paragraph 6 of its order pointed out : " We may add that proviso (ii) to section 10(2)(vii) of the Indian Income-tax Act, 1922, comes into the picture where a building, machinery or plant is sold and a sale implies transfer for a price. In the present case, neither any agreement for sale has been brought to our notice by the department nor any sale deed executed regarding the terms of the sale. The partnership document dated June 25, 1960, also does not refer to any sale. The learned departmental representative is also unable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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