1973 (7) TMI 48

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....to raise the additional plea as to whether the amount of Rs. 2,34,362 could be taxable as capital gains ? " The assessee is a private limited company owning a tile factory in Mangalore. By a resolution dated July 16, 1972, the assessee decided to sell its business as a going concern to a firm and its assets and liabilities consequently were transferred to a firm consisting of four partners. The same partners were the directors and shareholders in the company also. Their shares in the firm were in proportion to the shares they held in the company. The transfer resulted in a profit of Rs. 2,34,362 which was taken to the profit and loss account. There was also a balancing surplus of Rs. 16,047. The assessee filed a return in respect of t....

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....urged, the Tribunal remanded the matter to the Appellate Assistant Commissioner with a direction to allow both the parties to adduce such material as are necessary to decide the question whether the sum of Rs. 2,34,362 represented the value of the goodwill and whether the said amount could be chargeable to tax in the hands of the assessee as capital gains. Aggrieved by the said order of the Tribunal, the department sought the reference to this court. It was not urged before us by the learned counsel for the department, Sri Balakrishna, that there was no material before the Tribunal to allow the additional ground to be raised. His contention was that the Tribunal has no jurisdiction to allow the assessee to raise a new ground not agitated....