COMMISSIONER OF INCOME TAX Vs. NAVDURGA TRANSPORT CO

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following question relating to the assessment years 1975-76 and 1976-77 for the opinion of this court :

(2.) THE facts as found by the Tribunal are that the assessee-firm came to be constituted under a partnership deed dated October 6, 1973. It consisted of seven partners, Sarvasri Moti Lal Agarwal, Anand Agarwal, Anil Agarwal, Pradeep Agarwal, Prem Ji Agarwal, Murari Swaroop and Sub-hash Godbole. THE firm was constituted to carry on transport business in the name and style : "Messrs. Nav Durga Transport Company". Whereas, the first four partners contributed capital of Rs. 600, Rs. 700, Rs. 600 and Rs. 1,100, respectively, the other three partners brought their trucks into the firm as their contribution. THE firm appointed three agents under three separate agreements for the supervision, control and plying of the vehicles. THE three vehicles were shown as the assets of the firm in its balance-sheet.

(3.) IN CIT v. Dilip Singh Sardarsingh Bagga [1993] 201 ITR 995, the Bombay High Court held that registration under the Motor Vehicles Act is not an essential pre-requisite for the acquisition of ownership of the motor vehicles, but is an obligation cast upon an owner of the vehicle for the purpose of running the vehicles in any public place.