IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR MONDAY, THE 4TH FEBRUARY 2008 / 15TH MAGHA 1929 ITA.No. 178 of 2001() --------------------- ITA.763/COCH/1992 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT : ----------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON(SR.),SC FOR IT SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENTS: ------------- M/S. ZEENATH THEATRE, ALUVA. BY ADV. SRI.C.KOCHUNNY NAIR SRI.DALE P.KURIEN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 4/2/2008 , THE COURT ON 04/02/2008 DELIVERED THE FOLLOWING: C.N. Ramachandran Nair & T.R. Ramachandran Nair, JJ. - - - - - - - - - - - - - - - - - - - - - - - - I.T.A.NO.178 of 2001 - - - - -- - - - - - - - - - - - - - - - - - - - - Dated this the 4th day of February, 2008. JUDGMENT C.N. Ramachandran Nair, J. The question raised in this appeal filed by the Revenue pertains to the liability for capital gains on the surrender of shares by some partners in favour of the others in the partnership and the entitlement for depreciation for the firm. On hearing the learned Senior Counsel appearing for the appellant and after perusing the order of the Tribunal, we find that the Tribunal has entered a clear finding that there was no dissolution of the respondent firm and the reconstituted firm also continued to carry on business. The liability for capital gains on transfer of shares by the partners, was introduced in the year 1988 and the assessment year involved in this case is 1983-84. In the circumstances and in view of the findings of the Tribunal about the continuation of the business by the reconstituted firm, we do not find any substantial question of law arising from the order of the Tribunal. The appeal is therefore dismissed. (C.N. Ramachandran Nair, Judge.) (T.R. Ramachandran Nair, Judge.) -2- kav/ C.N. Ramachandran Nair & T.R. Ramachandran Nair, JJ. - - - - - - - - - - - - - - - - - - - - - - I.T.A. No.178 of 2001 - - - - - - - - - - - - - - - - - - - - - - JUDGMENT 4th February, 2008.