1971 (10) TMI 109

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..... eral Sales Tax Act, 1948, this court required the Sales Tax Tribunal, Punjab, 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 pr .....

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..... t of the premises was paid by the transferor-firm. The Assessing Authority 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 trans .....

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..... uestions of law for the opinion of this court. This application was also declined. 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 Devid .....

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..... two solitary facts proved on record, it cannot be spelt out that there was 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 .....

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..... e Tribunal, were in error in coming to the conclusion that there was a transfer of business as such, and not a sale of the stock of the business. For the reasons recorded above, we answer the question referred to us in the negative, i.e., in favour of the assessee and against the department. The assessee will get its costs which are assessed at Rs. 100. Reference answered in the negative.
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