TMI Blog1989 (4) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... s partners, the controversy being whether such transfer can be effected by mere entries in the books of the firm ? The assessee, Bharati Engineering Corporation, owned three immovable properties described as a building near Paradise Cinema, Phagwara, Plot No. 32, Industrial Area, Phagwara, and a plot near the Octroi Post, Grand Trunk Road, Phagwara. The assessee purported to make over these thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r on account of both long-term and short-term capital gains by holding that the entries in the books of the assessee-firm did not have the effect of transferring the properties from the firm to its partners. The Tribunal agreed with this view and held that mere entries without conveyance of the properties by a deed of registration would not have the effect of transferring ownership over, the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the court further went on to hold that even an agreement entered into by the partners treating the firm's property as individual property would not have such effect, unless that agreement was followed by a deed of conveyance known to law. A similar view has been taken in string of authorities. Those cited in this behalf are CIT v. Dadha and Co. [1983] 142 ITR 792 (Mad), Ram Narain and Brothers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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