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1973 (11) TMI 16 - BOMBAY HIGH COURT" Whether firm was entitled to relief under section 25(4) of the Indian Income-tax Act, 1922, in respect of the profits from its business for the period from October 1, 1951, to December 28, 1951, relevant to the assessment year 1953-54 ? " - It is true that the mere fact that there are common partners between two firms cannot by itself indicate a succession for the purpose of section 25(4) but the court is entitled to consider this as one of the factors or pieces of evidence which, taken together with the other material on record, which I have already discussed, in my opinion, shows that there was not a discontinuance or a complete break with the past when the old firm has dissolved, as the Tribunal has held, but there was a succession to the business of the old firm within the terms of section 25(4) of the Indian Income-tax Act, 1922. In this connection, it is important to bear in mind that the decision of the Supreme Court in Chambers' case shows unmistakably that no formal transfer is necessary and that it is sufficient if the overall business effect of the whole transaction or arrangement between the old firm and the new firm results in succession to the old business. Viewed in that manner, I have come to the conclusion that the question referred to us must be answered in the affirmative.
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