TaxTMI 
TaxTMI 
2004 (8) TMI 92
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....mstances of the case, the Tribunal was correct in deleting the income from capital gains added by the Income-tax Officer?" The present reference relates to the assessment year 1976-77 for which the relevant previous year ended on March 31, 1976. The late Shri Prabhu Dayal, the father of the assessee, and one Shri Radhey Shyam Agrawal, had jointly purchased a cinema building from M/s. Bombay Theatres Ltd., on February 20, 1958, for a sum of Rs. 1,22,400. Subsequently, they purchased machines and furniture, etc., also jointly and started running the cinema in partnership with each other with effect from November 2,1958, each having a half share. On January 26,1967, Shri Prabhu Dayal died. By the "will" of the same date of Shri Prabhu Dayal,....
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.... (ii) further to pay Rs. 5 lakhs for half share of the assessee in the movable properties of the firm. He also agreed to take over all the existing liabilities of the firm. The counter offer was accepted by the assessee and accordingly the earlier agreement to sell dated January 3, 1975, was cancelled. Rupees 50,000 given by the assessee to Shri Radhey Shyam Agrawal as earnest money was also refunded. On the other hand, Shri Radhey Shyam Agrawal gave to the assessee earnest money for Rs. 60,000 against the agreement to sell the immovable property of Rs. 2,60,000 and another Rs. 25,000 against the agreement to sell the movable properties for Rs. 5 lakhs. In the two deeds mentioned above, it was stated, inter alia, that the assessee had found....
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....tion deed, and (ii) sale deed, both on May 22, 1975, making inter-reference to each other. The dissolution deed was notified to the Registrar of Firms on May 22, 1975, and the sale deed was got registered on May 26, 1979. On the above date, i.e., May 22,1975, the balance-sheet of the firm had total assets of the value of Rs. 3,99,352 including the immovable properties (of Rs. 76,922) and the movables, and the capital accounts of the partners showed credit balances of Rs. 1,92,616 each. As against the above balance, the value of the share of the assessee in the firm's assets was worked out, as noted above at Rs. 7,60,000 (i.e., Rs. 2,60,000 for immovable property and Rs. 5,00,000 for movables). Actual money that passed on May 22, 1975, was,....