1992 (1) TMI 333

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.... to the sale by a partnership firm to another firm having same partners, but with different shares. After assessment for the years 1974-75 to 1977-78 had been finalised, proceedings under section 11-A of the Punjab General Sales Tax Act, 1948, were subsequently initiated by the Assessing Authority on the basis of information that during these assessment years, the assessee had transferred goods to....

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....sued under section 4-B of the Act, the Tribunal remanded the case to the Assessing Authority for admitting affidavits and making fresh determination. This is what constitutes the factual background leading to the following question being referred namely: "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that a partnership firm cannot make a transaction of sale....

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..... But for determining whether there is a firm the assessing officer will apply the partnership law, subject of course, to any specific provision in that regard in the tax law modifying the partnership law. If the tax law is silent, it is the partnership law only to which he will refer. Having decided the legal identity of the assessee, that it is a partnership firm, he will then turn to the tax la....

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....hat reference must be made first to the partnership law." It would be apparent, therefore, that as a matter of law there can be a transaction of a sale or purchase by one firm to another where the partners of both the firms are the same, but whether or not the two entities are separate and distinct would of course depend upon the peculiar facts and circumstances of the particular case. Such ....