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TMI Blog1982 (2) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. 2. Sita Ram Saluja and Mala Singh were carrying on business in partnership, having the ratio of 80 : 20 in its profits and losses. This firm continued its business in the name and style of Saluja Hosiery Factory which was manufacturing hosiery for sale in the open market up to 31-10-1975. There was a dissolution on 31-10-1975 and the running business in the name and style of Saluja Hosiery Factory was taken over by Sita Ram Saluja. In the business of hosiery manufacture under the above name and style, the firm had certain machinery which was owned by it and used in the business. With effect from 1-11-1975, Sita Ram Saluja carried on the business as an individual and as owner of the factory, Saluja Hosiery Factory. He closed his books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the assessee who was the owner of the assets, though received on dissolution of the firm on 31-10-1975, thereafter, because he was running the business as a proprietor. It was contended that though on the dissolution of a firm, the assets received by a partner may not be involving transfer in the connotation of the terms used in the Act, yet after the dissolution, the assets are owned by the individual partner and if he carries on the business, he owns the assets and if the assets are used in the business, depreciation cannot be disallowed. These submissions were, however, strongly opposed by the learned departmental representative, who contended that we have to keep in mind that the firm is nothing but a compendious name for its par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh High Court in the case of CIT v. T. Veerarghavulu Chetty Sons Co. [1975] 100 ITR 723. The facts of the case before us show that on the dissolution of the firm, the business was taken over and carried on by Sita Ram Saluja. From 1-11-1975 he is clearly the sole proprietor of the business and owns the plant and machinery used in the manufacture of hosiery in the business carried on under the name and style of Saluja Hosiery Factory, Ludhiana, which had earlier been carried on by the firm. The proposition propounded by the authorities below that since there was no transfer at the time of dissolution with regard to the assets which the present assessee received and used in the continuing business the depreciation cannot be allowed to him, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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