COMMISSIONER OF INCOME TAX Vs. RIDHKERAN SOMENI

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Patna Bench, has referred the following question of law under Section 256(1) of the I.T. Act, 1961 :

(2.) THE relevant facts leading to this reference may be briefly stated. THE assessee was a partner of Messrs. Bihar Trading Company, Bettiah. THE business, it appears, was carried on in the name of North Bihar Saw Mill. Certain machineries were purchased for their installation at Ghorasahan in February, 1961. On April 15, 1961, the firm was dissolved. On the dissolution of the firm, the saw mill, which was under installation at Ghorasahan, came to the share of the assessee. During the assessment year 1962-63, the assessee claimed exemption in respect of the saw mill, whose installation was completed at Ghorasahan after dissolution of the partnership under Section 84 (now replaced by Section 80J) of the I.T. Act, 1961. THE claim was on the ground that it was a new industrial undertaking.

(3.) AFTER endorsing the above view, the Supreme Court observed (p. 206) :