TMI Blog1968 (2) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... mber, 1954, are false?" The facts giving rise to this reference are in a short compass, as follows: The period of assessment concerned is from 2nd December, 1954, to 31st March, 1965. Messrs Pendse and Mandali were running a ration shop in certain premises mentioned in this suit and, after rationing was abolished, they were running a kirana shop therein. Messrs Pendse and Mandali, purporting to execute, what is described as a deed of sale between the respondent Shri Laxman Manjayya Nair and the proprietor of Messrs Pendse and Mandali, have transferred their business. A copy of that document is filed with the petition and is to be found at pages 26-28 of the paper-book. Under this agreement, the transferor purported to transfer on and from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that business, and as incidental to the sale of the said business and in consideration thereof, the purchaser agreed to pay rent of the said shop and observe all the terms and conditions of tenancy thereof and the petitioner also assigned and transferred the shop to the purchaser with the entire right, title and interest of the vendor therein under the terms of the tenancy. It is also mentioned in one of the clauses of the document that the vendor shall not carry on business like the one that is assigned. to the purchaser in the name and style of Messrs Pendse and Mandali within a radius of half a mile from the present place of business for a period of 10 years from the date of those presents. Thus, ostensibly, it was a sale of business a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so in the face of the circumstances pointed out by the Tribunal that this is a case where there was no evidence for the Tribunal to come to the conclusion which it has reached, viz., that the real object in entering into the transaction was not to transfer any business because there was no business to be transferred, but was to make the premises available to the respondent to enable him to carry on his business of manufacturing and selling surgical goods. The fact that the business of Messrs Pendse and Mandali was already closed six months before the date of transfer is sufficiently eloquent to show that there could be no intention on the part of either party either to sell any business or purchase any business, coupled with the fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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