COMMISSIONER OF INCOME-TAX, MADHYA PRADESH vs DEWAS CINE CORPORATION

The Supreme Court held that the return of cinema theatres to their original owners upon dissolution of a partnership does not constitute a 'sale' under Section 10(2)(vii) of the Indian Income-tax Act, 1922. The Court clarified that the terms 'sold' and 'transfer' in the Act should be interpreted in their ordinary meaning, and the adjustment of partners' rights in a dissolved firm does not equate to a sale. Consequently, the High Court's ruling favoring the assesses was upheld, affirming that the adjustments made did not trigger tax implications under the cited provisions.