TMI Blog1992 (11) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... g press used for the publication of newspaper. The printing press was imported from U.S.S.R. after obtaining appropriate licence from the Controller of Imports and Exports. The bill of lading was dated April 6, 1975, and the machine was installed in May, 1975. On April 4, 1978, the assessee entered into an agreement with M/s. Deccan News Printers (P.) Ltd. to sell some of the machinery and the said machines were handed over to the buyer on April 6, 1978. However, since these machines were imported, it was necessary to obtain the permission of the Registrar of Newspapers for the sale of the machines in terms of the Import Control Policy. There is no dispute in the instant case that there was an agreement between the assessee and the purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the asset as a short-term capital asset. However, if the date of the sale is June 15, 1978, the asset will be a long-term asset. The Appellate Tribunal has accepted the case of the assessee and has given a definite finding that the sale could have been completed only after the sanction of the Registrar was obtained and, therefore, there can be no doubt about the intention of the parties that the sale was to be completed only thereafter. Further, the consideration of the sale was also paid later. The Appellate Tribunal also accepted the alternative contention that the assessee had become the owner of the machine on April 6, 1975, and, therefore, the period of 36 months was over by April 6, 1978. Mr. Raghavendra Rao, learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement dated the 16th March, 1946, and the sale deed dated the 17th May, 1946, the position is that while the respondent will be liable for tax in respect of profits made with reference to immovables covered by the sale deed dated the 17th May, 1946, it will not be liable to tax in respect of profits attributable to the sale of movables of which delivery was given to them on the 30th March, 1946. That precisely was the determination made by the Appellate Tribunal. (underlining is ours) Mr. Raghavendra Rao relied on the sentence underlined above and contended that title to the movables passed when they were transferred to the transferee in the instant case also. A closer reading of the facts of the said case and the above observation wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the seller to the buyer, etc. However, the observation at page 438 requires to be noted (at page 430 of 86 ITR ) : " The appropriation of the goods to the contract by itself would not be such as to pass the property in the goods if it appears or can be inferred that there was no actual intention to pass the property." Section 19 of the Sale of Goods Act, 1930, makes the position quite clear. It states that where there is a contract for the sale of specific or ascertained goods, the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred. Therefore, it is quite clear that the crucial test is the intention of the parties regarding passing of title. If the intention of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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