TMI Blog1991 (9) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... 1975 and December 30,1975 of the year 1975-76. The assessee was treated to be a transferee in terms of section 19(1) of the Orissa Sales Tax Act, 1947 (hereinafter referred to as "the Act'). Undisputed position is that one P. Lakhman Rao had started business sometime prior to commencement of the business by the assessee in the same premises where the assessee carried on business. The assessee. purchased some stock of goods from P. Lakhman Rao, who had started business in the same premises earlier but discontinued. According to the assessing officer, in view of the explanation appended to section 19(1), the assessee was liable to pay tax from the date of commencement of business and the liability of Shri P. Lakhman Rao having already been de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a reference by making an application tinder section 24(1) of the Act. The Tribunal rejected the application by holding that no question of law arose out of the order passed by the Tribunal. 4.. The assessee moved this Court by filing applications under section 24(2) of the Act. This Court by order dated August 22, 1986, directed the question as indicated afore to be referred along with the statement of facts. Pursuant to that direction the Tribunal has submitted the statement of facts. 5.. According to the learned counsel for the assessee, merely because a person purchases some stock and carries on business activities in goods similar to those which were dealt with by the previous occupant of the premises, liability under section 19(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ern. When a business in entirety is transferred it implies transfer of the whole undertaking and enterprise. [See Re Rhagg Eastern v. Boyd [1938] Ch 828]. Therefore, the assessee has to show that there was no transfer of the goodwill, rights and liabilities, etc. In Raja Stores' case [1987] 65 STC 82 this Court found on the facts of that case that there was no material to show that there was transfer of liabilities, assets, furniture, goodwill, etc., and therefore, came to the conclusion that liability in terms of section 19(1) was not attracted. In the case at hand, we find that the Assistant Commissioner has recorded a finding that there was no transfer of goodwill and other benefits in favour of the assessee. This finding of fact was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
