JUDGMENT

TULZAPURKAR, J.: —These appeals by special leave raise an interesting question of law whether the distribution of assets of a firm consequent on its dissolution amounts to a transfer of assets within the meaning of the expression "otherwise transferred" occurring in S. 34 (3) (b) of the Indian Income-tax Act, 1961, having regard to the definition of transfer in S. 2 (47) of the Act?

2. The facts giving rise to the question lie in a narrow compass. The appellant (M/s. Malabar Fisheries Co.) is a dissolved firm represented by one of its erstwhile partners. The firm as originally constituted on April 1, 1959 consisted of four partners and carried on six different businesses in six different names and styles, namely, (a) Malabar Fisheries Co., (b) Coastal Engineering Co., (c) Cochin Tin Factory, (d) Goodwill Industries, all at Falluruthy, (e) Combine Steel Industries at the Industrial Estate at Olavakkot and (f) Lite Metal Industries at Visakhapatnam in Andhra Pradesh. The firm was dissolved on March 31, 1963 and under the deed of dissolution executed by and between the partners, the first business concern was taken over by one of the partners, the remaining five concerns by tw