KUTTUKARAN MACHINE TOOLS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ITR No. 302 of 1997 is at the instance of the assessee. The Tribunal has referred the following three questions for decision by this Court at the instance of the assessee.

(2.) ITR No. 303 of 1997 is at the instance of the revenue arising out of the same order of the Income tax Appellate Tribunal. The following three questions are referred at the instance of the revenue.

(3.) The matter arise under the Income Tax Act, 1961 (for short 'the Act'). The assessment year concerned is 1991-92, relevant accounting period ended 31st March, 1991. The assessee is a partnership firm carrying on business in the manufacture of machine tools for use in automobile industry. The said business was started in the year 1981. In the year 1990 the partners of the firm had promoted a limited company by name "Kuttukaran Machine Tools Ltd." All the partners of the assessee firm are shareholders of the said company. Thereafter the assessee firm had sold its business as a going concern as per an agreement dated 1.6.1990 to the said company. The said agreement dated 1.6.1990 was not annexed to the paper book in these two cases. Learned counsel for the assessee produced a copy of the said agreement along with a verified petition on 16.9.2002. We are also told by the counsel for the assessee that the sale deeds as contemplated under clause(4) of the said agreement have been executed subsequently.