TMI Blog1961 (11) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... of business premises and untensils there cannot be a complete transfer of business." 2.. The facts relevant for the purpose of this case may be stated as follows: One Arakhit Sahu was carrying on a hotel business in a part of his residential house near the Khallikote Railway Station. He was assessed as an unregistered dealer under section 12(5) for several-quarters ending with 30th June, 1954. He continued to remain an unregistered dealer until 25th July, 1954, when he let out for a period of one year his hotel premises and some furniture and utensils etc. of his business to the present assessee Epilli Ananta Patra on terms and conditions mentioned in a plain paper agreement (exhibit 1). Subsequently, however, endorsements of further rene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being admittedly an unregistered dealer, both the assessing officer as well as the first appellate Court fixed the liability of the assessee on the basis of section 19(2) of the Act. In second appeal before the Tribunal, the contention of the assessee, however, was upheld. While annulling the assessment, the Tribunal held that the transaction under exhibit 1 did not amount to a complete transfer of the ownership of the business and that the transferor Arakhit Sahu being an unregistered dealer, sub-section (1) of section 19 of the Act has no application as it applies to cases of transfers by registered dealers only. On this ground he also refused to apply the provisions of sub-section (2) of section 19 to this case, as he was of the opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and utensils, a list of which was appended to that agreement, on a daily rental of Rs. 2. He also took a security deposit of Rs. 50 from the opposite party so that if any furniture or utensil is lost, its price will be deducted from the said deposit and the balance will be returned to the opposite party at the termination of the lease. It also appears from the body of the agreement that renewals have been endorsed from year to year until 25th July, 1958. Thus from the terms of the document it is absolutely clear that Arakhit only let out his house with some furniture and utensils to the opposite party on a rental basis. There is absolutely no reference to the hotel business nor any transfer of any such business contemplated in exhibit 1. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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