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TMI Blog1978 (10) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... Dawood Co. was not dissolved or not discontinued. (2) Whether the Tribunal was right in law in holding that Rs. 35,683 was not taxable as "business income, which was received during the accounting year relevant to the assessment year in question, though the assessee had received it on consent decree made during the asst. yr. 1973-74? As we shall discuss presently, no referable question of law arises from the said order. 2. By its above mentioned order, the Tribunal dismissed the departmental appeal relating to the assessment of the assessee for 1973-74. While doing so, it did not find it necessary to call upon the learned representative of the assessee to argue in support of the impugned order of the AAC. 3. The assessment in ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was disposed of by a consent decree dt. 4th March, 1971. It was decided inter alia that a sum of Rs. 1,36,250 may be paid by the debtor to the firm by 31st Aug., 1972 in full satisfaction of the decree, failing which the firm was entitled to execute the decree after 31st Aug., 1972. 9. The sum of Rs. 1,36,250 included Rs. 42,283 on account of the principal due from the debtor of the firm and the balance was towards the interest due from the debtor of the firm. Sometime by 31st Aug., 1972 which is a date falling in S.Y. 2028, the debtor had paid to the firm the whole of the amount of Rs. 1,36,250. 10. The stand of the assessee in his assessment for 1973-74 was firstly that there is no taxable income in relation to the receipt of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e limited purpose of enabling the partners of a dissolved firm to continue a transaction or activity so far as it may be necessary to wind up the affairs of the dissolved firm and to complete the unfinished transaction, but that it did not mean that the business of the firm itself continued after the dissolution of the firm and that, therefore, the receipt of Rs. 1,36,250 was not from the business of the firm. The Tribunal further found that the right to realise the decretal amount arose when the City Civil Court passed its decree dt. 15th Jan., 1965, that there was nothing to show that the execution of the decree had been stayed at any time, that therefore, on well settled principles, the income if any, accrued at that stage and not in S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e instant case being mercantile, there was no scope for abandoning it in favour of the receipts method for the purpose of the assessment for 1973-74. 13. As stated earlier, since there was absolutely no merit in any of the contention urged on behalf of the Department, the Tribunal did not find it necessary to call upon the learned representative of the assessee to argue in support of the impugned order of the AAC and it dismissed the departmental appeal. 14. The suggestion in the first question stated in the application is that opposed the stand in the application is that opposed the stand of the Department. This is somewhat strange because the Tribunal has merely considered the rival cases of the Department and the assessee and held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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