COMMISSIONER OF INCOME TAX Vs. E.X. JOLLY

JUDGEMENT

(1.) THE question referred at the instance of the Department in all the four cases is the same and it reads as follows :

(2.) THE respondents -assessees were partners of a firm, M/s. Hotel Yuvarani, Ernakulam, During the assessment year 1987 -88 all the four assessees retired from the said firm. The assessing authority took the view that the assessees have transferred the right to receive future profits in favour of the partners newly admitted on their retirement. The first appellate authority confirmed the assessment. In appeal by the assessees, the Tribunal relying on the decision of this court in CGT v. : [1993]201ITR104(Ker) , held that there is no gift in such transactions.

(3.) IN view of our judgment in I. T. R. No. 61 of 1999 (CGT v. : [2004]265ITR395(Ker)), the question specified in para. 1 above has to be answered in the affirmative, i.e., in favour of the assessee and against the Revenue. We answer the question accordingly.