TMI Blog1971 (8) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... solely and absolutely entitled to all the assets of the Madras Type Foundry, stock-in-trade, etc., as on 11th May, 1965...Ambiganathan shall therefore take over the Madras Type Foundry, its assets, stock-in-trade, cash, bank deposits and bank accounts and everything pertaining to the foundry as the sole proprietor thereof and he shall be entitled to operate upon the bank accounts in his own right and deal with the assets of the Madras Type Foundry as the sole proprietor thereof." In the above light, the facts as stated in the affidavit by the petitioner can now be scrutinised. After the petitioner became the sole proprietor of the Madras Type Foundry which was being managed by a Board of Trustees on or before that date, he filed his regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e no basis either in law or in equity for examining the assessments afresh." It is to be noted that at the earliest point of time the petitioner never gave an impression that there was any discontinuity in the business of the Madras Type Foundry and that as he took over the same as sole proprietor by virtue of the orders of court, he cannot be called upon to answer any mistakes, discrepancies or changes which could be attributed to the quondam firm run by the board of trustees. On the other hand, he emphasised the position that the claims for exemption were carefully examined by the prior assessing authorities and there was no basis for reopening the same. This itself provides sufficient indicia that there has been continuity in the firm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iabilities of the quondam firm. It is elementary that in cases where a person steps into the shoes of another person or body of persons in charge or management of any undertaking he should justifiably make himself responsible for all the prior conduct of such administration as well and necessarily has to be made responsible for any evasions in tax if such an event has occurred in the course of such administration. It is this thing which is said to have happened in the instant case. The assessing authority, after reviewing the facts which were examined by him for the assessment year 1965-66, was satisfied that the claim for exemption made by the petitioner was baseless and allowances given on prior occasions by the assessing authorities un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus, therefore, the petitioner, by reason of the order of court exercised an option and as he was the erstwhile trustee also, he cannot escape the misgivings of the earlier administration or business by merely contending that he became the sole proprietor only from 11th May, 1965, and he is not, therefore, liable for any unpaid taxes as and before that date. The transfer has been effected in the instant case by an overt act on the part of the petitioner who, by paying some consideration to the trustees, secured the business, its assets and everything connected with it. He is therefore a transferee within the meaning of section 27 of the Act. If he is a transferee under the above section and if he is notionally a dealer under the statute, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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