The Kerala High Court dismissed the Income Tax Appeal filed by the Commissioner of Income Tax, Cochin against the Tribunal's order. The Court held no substantial question of law arose as the Tribunal found no dissolution of the firm and continued business.
The appeal filed by the Revenue is dismissed.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT :
THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR &
THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR
MONDAY, THE 4TH FEBRUARY 2008 / 15TH MAGHA 1929
ITA.No. 178 of 2001()
--------------------ITA.763/COCH/1992 of I.T.A.TRIBUNAL,COCHIN BENCH
APPELLANT :
THE COMMISSIONER OF INCOME TAX, COCHIN.
BY ADV. SRI.P.K.R.MENON(SR.),SC FOR IT SRI.GEORGE K. GEORGE, SC FOR IT
RESPONDENTS:
M/S. ZEENATH THEATRE, ALUVA.
BY ADV. SRI.C.KOCHUNNY NAIR
SRI.DALE P.KURIEN
THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 4/2/2008 , THE COURT ON 04/02/2008 DELIVERED THE FOLLOWING:
C.N. Ramachandran Nair & T.R. Ramachandran Nair, JJ.
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I.T.A.NO.178 of 2001
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Dated this the4th day of February, 2008.
JUDGMENT
C.N. Ramachandran Nair, J.
The question raised in this appeal filed by the Revenue pertains to the liability for capital gains on the surrender of shares by some partners in favour of the others in the partnership and the entitlement for depreciation for the firm. On hearing the learned Senior Counsel appearing for the appellant and after perusing the order of the Tribunal, we find that the Tribunal has entered a clear finding that there was no dissolution of the respondent firm and the reconstituted firm also continued to carry on business. The liability for capital gains on transfer of shares by the partners, was introduced in the year 1988 and the assessment year involved in this case is 1983-84.
In the circumstances and in view of the findings of the Tribunal about the continuation of the business by the reconstituted firm, we do not find any substantial question of law arising from the order of the Tribunal.
The appeal is therefore dismissed.
(C.N. Ramachandran Nair, Judge.)
(T.R. Ramachandran Nair, Judge.)
-2-
kav/
C.N. Ramachandran Nair &
T.R. Ramachandran Nair, JJ.
JUDGMENT
4th February, 2008.
2 issues framed by the court
Whether there is a substantial question of law arising from the Tribunal's finding of no dissolution of the partnership firm.
Whether the appeal filed by the Revenue regarding capital gains on surrender of shares is maintainable.
The Commissioner of Income Tax, Cochin
M/s. Zeenath Theatre, Aluva
C.N. Ramachandran Nair
T.R. Ramachandran Nair
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
