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2002 (11) TMI 23 - HC - Income TaxGift Tax Act, 1958 - "1. Whether, when the proprietary concern was converted into a partnership with a capital contribution of other partners and when share of profit is commensurate with it, such conversion of the proprietary business into partnership could be treated as gift under the Gift-tax Act, 1958 ? - 2. When the proprietary concern is converted into a partnership concern and the closing stock is transferred as its book value, whether it is necessary to value the closing stock at market value and arrive at the taxable gift ?" - we find that the Tribunal was not correct in holding that the transfer was made without any consideration and it is also not correct in holding that the closing stock should be valued at market price. Accordingly, both the questions of law are answered in favour of the assessee and against the Revenue
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