COMMISSIONER OF INCOME TAX Vs. JAGATRAM AHUJA

JUDGEMENT

(1.) THE Tribunal, Hyderabad, has referred the following question under S. 26(1) of the GT Act, 1958, for the opinion of this Court :

(2.) THE assessment year concerned is 1972 -73. The original assessment under the GT Act was made on 12th Oct., 1972, on a total gift of Rs. 70,000, but thereafter it was reopened under S. 16 (1) of the Act.

(3.) A partnership firm under the name and style "3 -Aces" was constituted on 9th Jan., 1965, by two brothers, Jagatram Ahuja ("the assessee" herein) and Bishanlal Ahuja. The firm was carrying on the business of a restaurant in a building known as "Mohsin -ul -Mulk Kothi", situated at Abid Road, Hyderabad. The building constituted the property of the firm. It comprised of 11,600 sq. yards of site on which it stood. On 15th April, 1971, an agreement was entered into between the assessee and his brother, Bishanlal, whereunder the assessee decided and agreed to retire from the partnership. The terms of the agreement, as set out in the assessment order, are to the following effect: