HARI LODGE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner is an assessee to income-tax. THE matter relates to the assessment year 1975-76.

(2.) IN this petition, filed under Section 256(2) of the INcome-tax Act, the petitioner prays that the INcome-tax Appellate Tribunal may be directed to refer the two questions of law, specified in paragraph 4 of the petition, for the decision of this court. The questions are as follows:

(3.) THE answer to question No. (2) will depend upon as to whether the firm stood dissolved as pleaded by the assessee on April 12, 1974, or only on or after June 24, 1974. We have already held that there is material to hold that there was no dissolution as pleaded by the petitioner on April 12, 1974. THE transfer effected by one of the partners was on April 8, 1974. THEreafter the release deed was executed by the other partners on April 17, 1974, on the happening of which even title passed to the transferee. So, the transfer could only be by the firm and the capital gain was assessable in the hands of the firm and not in the hands of the individual partners.