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TMI Blog2012 (6) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the following substantial questions of law:- 1. "Whether the Hon'ble Tribunal was legally right in law on the facts and circumstances of the case in holding that the entire land introduced by the partners as their capital and later on withdrawn in the year 1986 was an agricultural land ignoring the facts on record. 2. Whether the Hon'ble ITAT was legally right in law and on facts in holding that only the profit on sale of building erected by the firm on the land of the partners introduced as their capital can be considered in the hands of the firm ignoring the fact the land appurtenant to the structure was also part and parcel of the business of the assessee firm and the land cannot be separated from the building after construction o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e department, submits that the Tribunal has wrongly not treated the contribution of land as partnership firm's property and treated as individual property of the respective partners. This was the main issue urged by him. In reply, Sri Ashok Trivedi, learned counsel for the assessee, submits that there is voluminous evidence to show on record that the individual partners brought the land for the purposes of carrying on the firm's business thereon but it was never considered as the firm's property. Considered the respective submissions of the learned counsel for the parties and perused the record. A perusal of the assessment order would show that the Assessing Officer negated the contention of the assessee firm simply on the ground that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record that in the wealth tax proceedings the individual partners shown the land in question as their individual assets. The Tribunal has found that the assessee firm was allowed to use the land of the partners for the agricultural farming and poultry business. It is relevant to note that in the partnership deed it was specifically agreed upon among the partners that the retiring partner will withdraw his land. The Tribunal has taken into consideration the history of the firm reconstituted from time to time that whenever the firm was reconstituted the outgoing partner took away the land along with him, the wealth tax assessment of the individual partners and the fact that at no point of time the ownership of the land was transferred to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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