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2010 (11) TMI 661 - AT - Income TaxAddition - difference between the estimated fair market value and book value of the stock in trade and other assets of the firm - Assessing Officer issued a show-cause notice dated 20-12-2007 calling upon the assessee to show cause as to why the capital gain on transfer of the properties by the firm to one of its partners on dissolution of the firm be not brought to tax under the head 'capital gains - The law with regard to distribution of assets to partners on dissolution of a firm, as it originally prevailed and subsequent legislative amendments are as follows - It also observed that the position of law could not have been different for determination of the quantum of income even without specific reference to market value under section 45(4), because it is on the basis of the market value that the remaining assets of the firm are divided between the partners Regarding labour charges - In the year in the project is completed, it may not be possible for the Assessing Officer to embark upon an enquiry as to whether labour charges incurred for an earlier assessment year which has already been considered as part of WIP, is genuine or not - Appeal is allowed for statistical purpose
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