1992 (9) TMI 13

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....ion 263? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that there was no transfer of interest by the assessee to the other partners in the firm within the meaning of section 2(47) of the Income-tax Act, 1961? " There was a partnership under the name and style of Messrs. White Field Industrial Corporation, Bangalore (for short, "White Field"). It purchased certain land in Seghalli, Bidarahalli, Hebli, Hoskote Taluk, Bangalore district, from Messrs. Krishna Mining Company, Goginenipuram, Gudur, Nellore district, under a registered sale deed dated May 15, 1972. Out of the four partners of the White Field, one Sri Peda Sekhar died on July 9, 1977. The remaining partner....

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....rring the interest of the assessee in favour of the other partners in the firm did not arise. It accordingly allowed the appeal following the judgment of this court in CIT v. L. Raghu Kumar [1983] 141 ITR 674. At the instance of the Commissioner of Income-tax, the above two questions are referred to this court for its opinion. Sri S. R. Ashok, learned standing counsel for the Department, submits that on retirement, the assessee received the benefit of conversion of property into industrial purpose and as the conversion is at a higher valuation, the benefit was passed on to the assessee on retirement, so there was a transfer within the meaning of section 2(47) of the Act. From the narration of the facts given above, it is clear that ev....