COMMISSIONER OF INCOME TAX Vs. GAYATHRI ENTERPRISES

JUDGEMENT

(1.) THIS appeal by the revenue under section 260-A of the Income Tax Act, 1961 [for short 'the Act'] is against the order of the Tribunal dated 18.12.2003 in Appeal No.IT[SS]A.53/Bang/2003.

(2.) THE Tribunal having reversed the orders passed by the assessing authority and affirming order of the first appellate authority holding that the respondent � assessee was liable to pay certain tax in respect of its undisclosed income for the block period 1.4.1988 up to 22.7.1998 in view of certain transfer of the assets of the respondent � assessee that such transfer had taken place as on 1.6.1992 and therefore the respondent � assessee which is otherwise liable to pay tax on the income by way of capital gain earned by the firm in respect of assets that had been transferred and as per valuation as indicated in an agreement amongst the respondent � assessee and its erstwhile partners, had been suppressed or not disclosed by the firm and therefore the tax liability under Chapter-XIV-B of the Act, but this order having been reversed by the Tribunal on an erroneous assumption of facts and law, the order is vitiated and is liable to be set aside etc.

(3.) A few undisputed facts as can be inferred from the records are that partnership firm by name Gayathri Enterprises came to be formed by the joining together of as many as seven partners as on 19.5.1980. It appears while three minors were admitted to the benefit of the partnership firm and later the company by name M/s. ASK Brothers Private Limited was also admitted as a partner as on 1.3.1986 and thereby the number of partners swell to eleven.