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TMI Blog1987 (3) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... nion under section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue are: "(1) Whether, on the facts and in the circumstances of the case, the present case falls within the four corners of section 2(47) of the Income-tax Act, 1961, and capital gain is exigible against the assessee for the assessment year 1964-65 ? (2) Whether, on the facts and in the circumstances of the case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of his share capital in the partnership of which the constitution will be : ------------------------------------------------------------------------------------------------------------------------------------------------- Sl. Name Shares in the profits No. and losses ------------------------------------------------------------------------------------------------------------------------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961, the Income-tax Officer held that the assessee was liable to be taxed under the head " Capital gain income ". The capital gain was worked out after deducting the estimated market value of the plots as on January 1, 1954, being Rs. 8,19,544 from Rs. 33,75,000 at Rs. 25,55,456. The Appellate Assistant Commissioner confirmed the order whereas the Tribunal allowed the assessee's a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en partner contributes his assets in the firm by way of share capital, the consideration is not merely the notional value of such assets credited to his account, it is also the share in the profits and losses of the firm to which he will be entitled during the period be remains a partner and also to a share in the assets of the firm on the date of its dissolution which will depend upon the deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee's case is covered by the Supreme Court decision in Sunil Siddharthabhai v. CIT [1985] 156 ITR 509, following which we hold in relation to the first question that the case of the assessee falls within the four corners of section 2(47) of the Income-tax Act, 1961, and capital gain is not exigible against the assessee for the assessment year 1965-66. In the view we have taken as regards the first ..... X X X X Extracts X X X X X X X X Extracts X X X X
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