B. J. DIVAN, D. A. DESAI, P. D. DESAI, J.

( 1 ) IN this case the Chief Controlling Revenue Authority has referred the following question to us for our opinion under sec. 54 (a) of the Bombay Stamp Act 1958 Under which Article of Bombay Stamp Act the instrument dated March 31 of 1960 is chargeable with stamp duty whether it is Article 46 as claimed by the Revenue or Article 47 as claimed by the respondents or any other article ?

( 2 ) THE facts leading to this reference are as follows: On March 23 1950 Chaturbhuj alias Bachubhai Tribhovandas and Chhotalal Tribhovandas who are the two respondents in this reference and one Thakar Tribhovandas Ramji entered into an agreement of part- nership for the purpose of starting and running a business of Motor Transport Motor spare parts etc. The firm was to carry on its business in the name and style of M/s Bachubhai Tribhovandas and Company near Savarkundla in Bhavnagar district of the State. The firm carried on its business upto March 18 1960 It was decided by all the partners to dissolve the firm on certain terms and conditions. After the dissolution two of the partners viz. Chhotalal Tribhovandas the second respondent herein and Thakkar Tribhovandas Ramji ceased to have any connection with the business and after the dissolution the business of the firm was to be carried on by Chaturbhuj alias Bachubhai Tribhovandas the first respondent herein as his sole proprietary business. The partners made up the accounts between them and for that purpose they drew up the balance-sheet for the period ending with the evening of March 18 1960

( 3 ) ACCORDING to the arrangement arrived at between the partners Thakkar Tribhovandas Ramji was given a sum of Rs. 59 498 paise in cash as his share in the assets of the firm and the amount was shown as credited in his account with the firm. Chaturbhuj alias Bachubhai Tribhovandas was given certain immovable properties and stock-in-trade belonging to the firm and the value of the assets which he got on dis- solution was Rs. 2 6 236 As against these assets given to the first respondent he undertook to discharge the liability to pay the outstanding debts of the firm and these debts amounted to Rs. 1 35 433 paise. The net amount thus falling to the share of the first respondent was Rs. 70 803 The second respondent was given certain immovable properties owned by the firm and those properties were valued at about Rs. 80 395 and Thakkar Tribhovandas Ramji and Chhotalal Tribhovandas thus were given properties and the first respondent got immovable properties as his share of the assets. But he also undertook to discharge the outstanding liabilities of the firm. The deed of dissolution setting out the terms and conditions of dissolution was executed on March 31 1960 and the disso- lution was to come into effect from March 18 1960 The instrument of dissolution of partnership was executed on March 31 1960 on non-judi- cial stamp paper of Rs. 18. 00. This document was impounded under sec. 33 of the Bombay Stamp Act and after hearing the respondents the Collector of Bhavnagar held that the instrument in question in addition to being a deed of dissolution of partnership was also an instrument of partition and hence was chargeable with duty of Rs. 3 444 and as an instrument of dissolution of partnership it was chargeable with duty of Rs. 15. 00 under Articles 46 and 47b respectively of Schedule I of the Stamp Act. The Collector directed the respondents herein to pay the deficit stamp duty of Rs. 3 441 together with penalty in a like amount and ordered that the total amount of Rs. 6 882 be recovered from the two respondents herein.

( 4 ) BEING aggrieved by the order of the Collector of Bhavnagar the two respondents herein applied to the Chief Controlling Revenue Autho- rity who is the applicant in the present proceedings. The applicant after hearing the two respondents substantially confirmed the views of the Collector. This order was passed by him on November 24 1961 The only m

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