1987 (3) TMI 156

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....rtnership with the assessee company which was evidence by a deed of partnership dt. 13th April 1980. The aim and object of the said partnership was to start and carry on the business of constructing and selling offices, flats, houses and other accommodation including business of real estate. It appears that the said business was o start with the said house property as the asset of the partnership since the assessee had offered it services in getting the said property vacated from the tenants and also to arrange necessary funds for the development of the said property by constructing the multi-storeyed flats. Sri K.R.K. Nair had, therefore, transferred his right, title and interest in the said property to the partnership. The said partnershi....

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....er, it is also contended by him that the said house property was stock-in-trade of the assessee and it was held for business activity and not merely for earning rent. He in support placed reliance upon judgements of the Hon'ble Supreme Court in Karnani Properties Ltd. vs. CIT (1981) 82 ITR 547 (SC) and S.G. Mercantile Corporation Pvt. Ltd. vs. CIT 1972 CTR (SC) 8 : (1972) 83 ITR 700 (SC). He also referred to cl. 3(A) (a) of the Memorandum of Association of the assessee company to show that to lease property was also one of the contemplated businesses of the assessee company. 5. Learned Departmental Representative while opposing the appeal refuted the argument of ld. counsel for the assessee. It is contended by him that there is no materi....