Appeal by special Leave from the judgment and order dated July 30, 1964 of the Kerala High Court in Income tax Referred Case No.
The Income tax Officer rejected the claim and the Appellate Assistant Commissioner companyfirmed that order.
T. Desai, S. K. Aiyar and R. N. Sachthey, for the appellant.
1,41,506 taken into account under the head Gratuity payable to workers of the business in settling the accounts of the firm till August 24, 1957, was a permissible outgoing.
V. Viswanath Iyer, S. K. Dholakia, and O. C. Mathur, for the respondent.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The partnership was dissolved on the death of Ramasubramony on August 24, 1957, and the business was taken over and companytinued by Walter on his own account.
20 of 1963.
702 of 1966.
The Judgment of the Court was delivered by Shah, J. Two persons Walter and Ramasubramony carried on business in cashewnuts as partners in the name and style of Messrs. Gemini Cashew Sales Corporation.
The Income tax Appellate Tribunal held that by the transfer of the undertaking to Walter, there was numberinterruption in the employment of the workmen of the establishment, that the terms and companyditions of service applicable to the workmen were number altered to their detriment, that Walter had number expressly agreed to take over the liability for companypensation payable under S. 25FF of the Industrial Disputes Act, 1947, and since there was dissolution of the partnership on August 24, 1957 and the undertaking was transferred, the workmen became entitled to retrenchment companypensation, which the firm was liable to pay.
In proceedings for assessment of tax it was urged on behalf of the firm that an amount of Rs.
The services of the employees were number interrupted and there was numberalteration in the terms of employment of the employees of the establishment.
