TMI Blog1960 (2) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... rting scrap iron worth about Rs. 2 lakhs and selling the same in this country under an agreement, dated 13th April, 1950, a copy of which is annexure ' A ' and forms part of the case. The assessee himself went to Malaya on behalf of the firm and purchased scrap iron. After the goods were so acquired, the Government of India did not grant permission to the firm to sell this stock. On 31st December, 1950, the partnership was dissolved and a deed, dated 5the January, 1951, the partnership was dissolved of, a copy of which is annexure B and forms part of the case. One of the recitals in this deed says : . . . the retiring partner hereby assigns and releases unto the said continuing partner all his share, right, tit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder business. 4. The Appellate Assistant Commissioner on appeal wrote as follows : I find that since the firm did not get a permit for selling the stock which had been brought from Malaya no sale was effected till the date of the dissolution of that firm. The appellant's share of profit will be a share in the profit if the accounts were closed on 31st December, 1950. Since the stock was remaining unsold on that date there could not have been any profit till then. The payment of Rs. 31,000 by Abbas was only to enable him to get the ownership of all the stock that had been purchased jointly by him with the appellant. It was not any share of profit that was given to the appellant. This cannot be included in his asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether there were materials for the Tribunal to hold that the aforesaid sum of Rs. 31,000 or any part thereof was profit that accrued to the assessee assessable under the Income-tax Act. P. Sharfuddin for the assessee. C. S. Rama Rao Sahib and S. Ranganathan for the Commissioner. JUDGMENT RAJAGOPALAN J.- In form and virtually in substance the Rs. 31,000 paid to the assessee by his partner Abbas was compensation for the relinquishment of the rights of a parnter which the assessed had. The deed of partnership specifically provided that the purchase and sale of scrap metal was the only item of business that the partnership was to undertake. Though the deed of partnership provided that it was only the assessee that was to co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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