Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2006 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (8) TMI 142 - HC - Income TaxCapital gains u/s 45 - dissolution of the partnership firm - "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in coming to the conclusion that the assessee-firm was liable to capital gains u/s 45(4) on the ground that there was transfer or distribution of capital assets on the dissolution of the partnership firm?" - "The Finance Act, 1987, with effect from April 1, 1988, omitted this clause (ii) of section 47, instead of amending section 2(47), the effect of which is that distribution of capital assets on the dissolution of a firm would be regarded as transfer." - When Parliament in its wisdom has chosen to remove a provision, which provided fIno transfer", there is no need for any further amendment to section 2(47) as argued before us. In our view, despite no amendment to section 2(47), in the light of removal of clause (ii) to section 47, the transaction certainly would call for tax at the hands of the authorities. - we deem it proper to answer the question under reference in favour of the Revenue
|