Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (10) TMI 685 - AT - Income TaxAddition – STCG - The Learned Assessing Officer noticed that the said Ratanpur factory building which was withdrawn by the partner at a written down value of Rs. 34,64,745 was valued by a Registered Valuer for Rs. 3,22,65,000 for the purpose of new firm and the company – AO submitted that another important aspect which was overlooked was that the valuation done by Abbasi and Abbedin Tinwala comprised of land which was in their individual ownership and the factory building which was owned by the firm - . The Learned Authorised Representative of the assessee submitted that there was no dissolution of the firm and hence there was no transfer of assets - if a transaction falls within the ambit of the above stated definition of transfer then irrespective of the fact whether the transaction is a transfer within the Transfer of Property Act, 1881 or not, the income accrued on such transaction is chargeable to Income-tax Act under section 45(4) of the Act Thus, in view of the above in our considered view the fair market value of the Ratanpur factory building as on 1-4-2000 which was distributed by the assessee firm to its two partners was Rs. 86,15,894 and accordingly, the short term capital gain in the hands of the assessee firm under section 45(4) will be difference between Rs. 86,15,894 and the written down value of Rs. 34,64,745 which is Rs. 51,51,149 – Appeal is partly allowed
|