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1964 (11) TMI 13 - SC - Income TaxWhether the question referred by the Tribunal to the High Court was only a pure question of fact and, therefore, the High Court has no jurisdiction to give its opinion thereon ? Whether where the transferor retains the goodwill and most of the assets and the transferee carries on the same business with a part of the assets of the principal business, it cannot be said that there is succession to the whole of the business within the meaning of section 25(4) of the Act ? Held that:- The expression " succession ", as stated by Simon in his book on Income-tax, has acquired a somewhat artificial meaning. The tests of change of ownership, integrity, identity and continuity of a business have to be satisfied before it can be said that a person " succeeded " to the business of another. Unless the facts found by the Tribunal satisfy the said tests, the finding cannot be conclusive. The tests crystallized by decisions have given a legal content to the expression " succession " within the meaning of section 25(4) of the Act and whether facts proved satisfy those tests is a mixed question of law and fact. If so, it follows that a question of law arose out of the Tribunal's order and the High Court has jurisdiction to ascertain the correctness of the finding given by the Tribunal on the question of succession. Appeal dismissed.
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