9911796707
TMI Blog1987 (3) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... 13th April 1980. The aim and object of the said partnership was to start and carry on the business of constructing and selling offices, flats, houses and other accommodation including business of real estate. It appears that the said business was o start with the said house property as the asset of the partnership since the assessee had offered it services in getting the said property vacated from the tenants and also to arrange necessary funds for the development of the said property by constructing the multi-storeyed flats. Sri K.R.K. Nair had, therefore, transferred his right, title and interest in the said property to the partnership. The said partnership was in the name of Jairam Enterprises. Income from the said property in the asst. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee and it was held for business activity and not merely for earning rent. He in support placed reliance upon judgements of the Hon'ble Supreme Court in Karnani Properties Ltd. vs. CIT (1981) 82 ITR 547 (SC) and S.G. Mercantile Corporation Pvt. Ltd. vs. CIT 1972 CTR (SC) 8 : (1972) 83 ITR 700 (SC). He also referred to cl. 3(A) (a) of the Memorandum of Association of the assessee company to show that to lease property was also one of the contemplated businesses of the assessee company. 5. Learned Departmental Representative while opposing the appeal refuted the argument of ld. counsel for the assessee. It is contended by him that there is no material on record to evince that the assessee dealt in real estate and it was its organis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities below rests on this point only and they failed to further investigate as to under which head income should be assessed. They should have taken into consideration the various circumstances under which the partnership was formed and the property was transferred by the original owner to the assessee company and then the partnership was dissolved and the same business of the partnership was taken over by the assessee company. It is necessary to investigate the facts and then to apply the correct law for arriving at just and proper decision. We, therefore, set aside the orders of the tax authorities below and refer the case back to the ITO for de novo assessment after proper investigation of the facts giving opportunity of being hear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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