COMMISSIONER OF INCOME TAX Vs. RAM SARAN CHOPRA

JUDGEMENT

(1.) THIS reference under Section 256(1) of the Income-tax Act is concluded by the decision of the Supreme Court in CIT v. Srinivasa Setty [1981] 128 ITR 294. The question referred to us for our opinion is as stated below:

(2.) THE assessment year in question before us is 1969-70. THE assessee is an individual. He set up a proprietary firm in the name and style of M/s. Chopra Pharmacy in the town of Patna on July 13, 1964, His initial investment was Rs. 40,000. THE assessee sold the proprietary firm on April 1, 1968, as a running concern for Rs. 80,000. This sum was made up as follows:

(3.) THE reference must, therefore, be answered in the affirmative, against the Revenue and in favour of the assessee. Since the matter in controversy has been settled by a decision of the Supreme Court subsequent to the reference, no case for award of costs is made out.