- (1.) Leave granted in SLP (C) Nos. 13009-13012/2003,13021-13022/2003, 2763-2766/2004 and 13015-13016/2003.
(2.) These appeals have their matrix in a common judgment rendered by a Division bench of the Karnataka High Court. By the impugned judgment several appeals filed by assessees and revenue purported to be under section 260a of the Income Tax Act, 1961 (in short 'the Act') were disposed of.
(3.) Detailed reference to the factual aspects would be unnecessary as we propose to dispose of the appeals taking note of submissions made by learned counsel for the appellants to the effect that the manner of disposal as done by the High Court is not in line with the prescriptions of Section 260a of the Act. Suffice it would to only note that the assessees were at some point of time, partners of a partnership firm styled Mangalore Ganesh Beedi works. The said firm which consisted of thirteen partners stood dissolved in terms of the deed of Partnership with effect from 6.12.1987, by efflux of time. According to the revenue, thereafter the erstwhile partners continued the business being members of an Association of Persons. This Association of persons was described by the authorities and the high Court as A. O. P.-13. This entity continued till the assets of the firm were sold pursuant to orders of the High Court in winding up proceedings with effect from 21.11.1994 in terms of a scheme framed. Pursuant to the scheme, several membeis of the A. O. P.-13 had offered bids either individually or in groups. The bid of three of them, described as A. O. P-3 was accepted by order dated 21.9.1994. After deposit of the bid amount of Rs. 92 crores, it was noted that the assets of the erstwhile firm were treated to have been sold to A. O. P.-3 with effect from 21.11.1994.;