Ram Lal and A. T. M. Sampat, for the respondent.
K. Mitra, B. B. Ahuja, R. N. Sachthey and B. D. Sharma, for the appellant.
Appeal from the judgment and decree dated March 5, 1964 of the Allahabad High Court in Income tax Reference No.
The Judgment of the Court was delivered by Shah, C.J. The respondent who is the Karta of a Hindu Un divided Family entered on behalf of the family into a partnership with one Devi Sharan Garg to carry on the business of manufacturing and selling pharmaceutical products and literature relating thereto.
In proceedings for assessment of the respondent for the year 1947 48 the Income tax Officer sought to bring an amount of Rs.
On July 27, 1946 the partnership was dissolved .
71 of 1959.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
2,50,000/ .
1,25,000/ in lieu of his share and the business together with the goodwill was taken over by Devi Sharan Garg.
The assets of the firm which included goodwill, Machinery, furniture, medicines, library and companyyright in respect of certain publications were valued at the date of dissolution at Rs.
The respondent was paid a sum of Rs.
1,25,000/received by the respondent represented capital gains was rejected by the Income tax Officer, Appellate Assistant Commissioner and the Income tax Appellate Tribunal.
Against that order, with certificate granted by the High, Court, this appeal has been preferred.
70,000/ to tax as capital gains.
1223 of 1967.
The companytention raised by the respondent that numberpart of the amount of Rs.
