CHALASANI VENKATESWARA RAO VIJAYAWADA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal is filed by the appellant/assessee under Section 260-A of the Income Tax Act, 1961 challenging the order dated 08-02-2000 of the Income Tax Appellate Tribunal, "B" Bench, Hyderabad in I.T.A.No.1529/Hyd/94 for the assessment year 1989-90.

(2.) The appellant was a partner in a firm by name M/s.Theatre Radha, a registered firm at Vijayawada along with one Y.Kalyana Sundaram under a partnership deed dated 06-07-1976 with retrospective effect from 26-06-1976. The partnership was a partnership at will. Sri Y.Kalyana Sundaram was the owner of the site and the super-structure and had brought those properties as his capital in the firm. The appellant brought in liquid cash of Rs.3.00 lakhs. Accordingly the appellant acquired 50% interest in the site and the super- structure of the cinema theatre. At that point of time the property was valued at Rs.6.00 lakhs. The business of the firm was carried on till 28-02-1979.

(3.) The other partner Y.Kalyana Sundaram filed a suit O.S.No.125 of 1979 in the Sub Court, Vijayawada for settlement of accounts which was decreed with the following directions: