TMI Blog2021 (3) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... .2000. Further, the Assessing Officer has also recorded the statement of the assessee, which was during the course of enquiry and it has been candidly admitted that there has been no transfer of stock. The Tribunal, without examining the factual issue, dismissed the Revenue's appeal, which is not sustainable - the Appellate Tribunal committed an error in dismissing the Revenue's appeal without examining the factual position. Tax Case Revision is allowed. - Tax Case Revision No.31 of 2020 - - - Dated:- 23-2-2021 - Honourable Mr.Justice T.S.Sivagnanam And Honourable Ms.Justice R.N.Manjula For the Petitioner : Mr.R.Swarnavel Government Advocate For the Respondent : No Appearance ORDER T.S.SIVAGNANAM, J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and in the circumstances of the case, the Tribunal is right in law in holding that the transfer of machinery to one of its partners is not a sale and it is only transfer of closing stock to its partner, whereas the fact is that in the respondent's firm the partners are brothers and the transferee was also running a separate business concern? 3. We have heard Mr.R.Swarnavel, learned Government Advocate appearing for the petitioner. Though notice was sent to the respondent-assessee, none appears for the respondent-assessee before this Court. We also note that despite several notices sent by the Appellate Tribunal, the assessee did not appear and the matter was decided ex-parte, however, against the Revenue. 4. The short issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em, a partnership firm, and it represented only a transfer of the asset of a firm on dissolution as the registration number was not in force after 31.03.2003 and it was not a sale transaction in the regular course of business. 7. On a perusal of the assessment order dated 16.03.2006, we find the factual position to be entirely different. For a better appreciation, we quote the finding rendered by the Assessing Officer on the issue as to whether the theory of stock transfer, as pleaded by the assessee, was sustainable. At the time of production of accounts for the year 2002-03, the dealer have filed their statement of Trading, Profit and Loss Account. In this statement, the dealers had declared that they have stock transferred goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness. During this enquiry, there had been no stock of any goods got as transfer of stocks. Goods worth over ₹ 32,00,000/- is not a paltry stock which could loose sight of by the officer who had verified the particulars declared in the Form- D application, nor loose attention of the applicant who had received as a stock acquired at the time of dissolution of the earlier business. There was also no mention of the agreement between the two partners. In view of these factors, the stocks worth ₹ 32,45,350/- purported to have acquired by Thiru B.Salam cannot be accepted as true and correct. 8. The correctness of the above finding has not been assailed by the Tribunal, nor there is any observation to the effect that the As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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