  In 'The Lost Notebook and Other Unpublished Papers' of Ramanujan are present
some manuscripts of Ramanujan in the handwriting of G. N. Watson which are
'copied from loose papers'. We present a proof of a beautiful formula of
Ramanujan in one of these manuscripts, namely a transformation formula
involving the Gamma function and Riemann Zeta function. This formula elegantly
yields a modular relation. Later we also give another proof of the first
equality of this transformation formula along the lines suggested by Andrew P.
Guinand.
