TaxTMI 
TaxTMI 
2002 (8) TMI 80
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....U J.-The assessment year is 1977-78. The question referred to us at the instance of the assessee is: "Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that on the reconstitution of the firm, M. K. Krishna Chetty, by the deed dated September 6, 1976, there is a gift by each of the erstwhile partners (assessees) in favour of the incoming partner, Asoka....
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....t. of the firm's capital of Rs. 1 lakh. It was however provided that in case of dissolution the company would receive twenty five per cent. of the net assets of the firm. In the subsequent assessment year, the firm was dissolved and the company was given the building and the business of the firm. The assessing authority, the appellate authority and the Tribunal found that the relinquishment of ....
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....ifference between the share given to the partner in the profit and loss of the firm and the share to be given to it at the time of dissolution. The methodology adopted by the Tribunal in arriving at the value of the gift is not a matter in issue before us. The reference is only regarding the legality or otherwise of the Tribunal's order holding that on the reconstitution of the firm, and diminu....
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....ther partners to a share in the profits was reduced and the benefit of the share relinquished by the other partners given to the minor. The court in that case referred with approval to the decision of the Calcutta High Court in CGT v, Nani Gopal Mondal [1984] 150 ITR 469 and to the case of M. K. Kuppuraj v. CGT [1985] 153 ITR 481 (Mad), which case incidentally concerned one of the assessees here. ....