TMI Blog1979 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... nd sanitarywares. It was incorporated in the year 1957 though the production commenced in 1959. It had a collaboration with Fordham Pressing Ltd., London. In this reference, we are concerned with two assessment years, 1960-61 and 1961-62. For both these years, the assessee-company had claimed relief under s. 15C of the Indian I.T. Act, 1922. The relief was initially allowed. It was subsequently found by the ITO that the company had taken land together with superstructure on lease for its business which superstructure had been previously used by M/s. Stewart Laboratories for their factory buildings. The ITO, therefore, took proceedings under s. 148 (of the Act of 1961) and held that relief under s. 15C (of the Act of 1922) was not permissibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the Tribunal based its decision, which was in favour of the assessee principally on the footing that taking the structure on lease would not constitute a transfer within the meaning of s. 15C. Now, Mr. Joshi who appeared on behalf of the revenue pointed out that the view taken by the Tribunal as to what was the precise connotation of the word " transfer ", is contrary to the decision of the Division Bench of this High Court in Capsulation Services P. Ltd. v. CIT [1973] 91 ITR 566. As a matter of fact, it may be stated that the view that even a lease will constitute a transfer, had been taken by the Tribunal in the very appeal from which the reference arose in the aforesaid decision. In the reference before us, the Tribunal in its appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter goes back that although lease to it of the previous structure may amount to a transfer, the portion of the previously existing superstructure utilised by the assessee constituted a very small part of the new undertaking and the utilisation of the structure which may be strictly regarded as transfer in the legal sense, will not amount to the assessee having " formed " its new undertaking by utilisation of the old structure. In other words, it was submitted to us that before finally deciding the question whether or not relief under s. 15C(2) was required to be allowed or denied, this aspect of the matter will be required to be considered by the Tribunal and the assessee should be left free to agitate the same before the Tribunal. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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