TMI Blog1984 (8) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Appellate Tribunal, Cochin Bench, under s. 26(1) of the G.T. Act, 1958 " Whether, on the facts and circumstances of the case, Rs. 1 lakh contributed by the assessee's son as his share of the capital for the partnership business can be considered as consideration for the gift involved in the conversion by the assessee of his proprietary business into a partnership business ? " In resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount on which tax was payable. The assessee appealed to the Tribunal against the order of the Commissioner. The Tribunal found that the sum of Rs 1,00,000 paid by the son was towards consideration for the assets transferred. The Tribunal thus accepted the contention of the assessee and set aside the order of the Commissioner. The accepted facts show that during the relevant year, the fathe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. Assuming, therefore, that the transaction was in the nature of a gift, even so, as rightly, in our view, found by the Tribunal, consideration in the sum of Rs. 1,00,000 had passed from the son to the father, for the benefits conferred on the son by being admitted into the partnership. In the circumstances, we are of the view that, if there was a gift, the only amount on which tax was paya ..... X X X X Extracts X X X X X X X X Extracts X X X X
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