TMI Blog1971 (10) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... to state the case and refer the following question of law for its opinion: "Whether on the facts and in the circumstances of the case it could be held that there was a transfer of the entire business or a succession of the business?" The relevant year is the assessment year 1954-55. Messrs. Santokh Singh Karam Singh prior to 22nd July, 1954, were selling cloth as hawkers. On the 22nd July, 195 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took the view that the transfer of cloth and the premises by Messrs. Sunam Rai Deviditta Mal to Messrs. Santokh Singh Karam Singh was transfer of business within the meaning of section 17 of the Act and all purchases made on the registration certificate of the transferor-firm were treated as the gross turnover of the transferee-firm with the result that a tax liability of Rs. 908-13-0 was created ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clined. The assessee then moved an application under section 22(2) of the Act and this court passed an order under section 22(3) requiring the Tribunal to refer the question of law already set out. It is significant that only two factors are proved, namely, that the entire stock of cloth was sold by Messrs. Sunam Rai Deviditta Mal to Messrs. Santokh Singh Karam Singh, and this sale was subjected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a transfer of business as such. The view we have taken of the matter finds support from the plain language of section 17, which is in the following terms: "Where the ownership of the business of a registered dealer is entirely transferred and the transferee carries on such business either in its old name or in some other name, the transferee shall for all the purposes of this Act (except for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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