COMMISSIONER OF INCOME TAX Vs. NARKESHARI PRAKASHAN LIMITED

JUDGEMENT

(1.) THIS is an application by the CIT, Nagpur, under S. 256(2) of the IT Act, 1961, for calling upon the Tribunal to state the case and to refer the following questions said to be of law for the opinion of this Court :

(2.) THE assessee, M/s Narkeshari Prakashan Ltd., Nagpur, is a publishing house which, in the year 1972, had also branches at Raipur and Jabalpur from where a daily (Yugadharma) was published. Those two branches along with all assets and liabilities were sold to two different co operative societies, respectively, for a sum of Rs. 2,65,179 and Rs. 1,04,454. The assets included buildings, machinery, furniture, fixtures, loans and advances to the staff, stock, security deposit, goodwill, etc., and the liabilities included loans, unpaid bonus and wages, outstanding liabilities, etc.

(3.) ONLY two contentions are raised before us on behalf of the Revenue: