1968 (2) TMI 115

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... seller of surgical appliances and that the recitals in that connection in the transfer deed dated 2nd December, 1954, are false?" The facts giving rise to this reference are in a short compass, as follows: The period of assessment concerned is from 2nd December, 1954, to 31st March, 1965. Messrs Pendse and Mandali were running a ration shop in certain premises mentioned in this suit and, after rationing was abolished, they were running a kirana shop therein. Messrs Pendse and Mandali, purporting to execute, what is described as a deed of sale between the respondent Shri Laxman Manjayya Nair and the proprietor of Messrs Pendse and Mandali, have transferred their business. A copy of that document is filed with the petition and is to be fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....andali and also the right to represent to the customers that the purchaser was the successor of the vendor in that business, and as incidental to the sale of the said business and in consideration thereof, the purchaser agreed to pay rent of the said shop and observe all the terms and conditions of tenancy thereof and the petitioner also assigned and transferred the shop to the purchaser with the entire right, title and interest of the vendor therein under the terms of the tenancy. It is also mentioned in one of the clauses of the document that the vendor shall not carry on business like the one that is assigned. to the purchaser in the name and style of Messrs Pendse and Mandali within a radius of half a mile from the present place of busi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... his business of manufacturing and selling surgical appliances. We are unable to see how it can be said to be so in the face of the circumstances pointed out by the Tribunal that this is a case where there was no evidence for the Tribunal to come to the conclusion which it has reached, viz., that the real object in entering into the transaction was not to transfer any business because there was no business to be transferred, but was to make the premises available to the respondent to enable him to carry on his business of manufacturing and selling surgical goods. The fact that the business of Messrs Pendse and Mandali was already closed six months before the date of transfer is sufficiently eloquent to show that there could be no intention ....