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2015 (11) TMI 983 - AT - Income TaxTransfer of property - AO treating the capital gain as short-term capital gain - Held that:- We are conscious that the partnership firm under the common law is not a legal entity. However, under the Income-tax Act, it is a separate and distinctly assessable unit. This distinction has to be borne in mind and the partnership firm carried on its business through its partners. Therefore, for all practical purposes, under the provisions of the Income-tax Act, the partnership firm is the owner of the property and the assessee became the owner on the date on which it was re-transferred from the partnership firm. Therefore, the gain, if any, on transfer of property, has to be assessed only as short-term capital gain and not as long-term capital gain. Therefore, this Tribunal do not find any infirmity in the order of the lower authority and accordingly, the same is confirmed. The provisions of sections 54 and 54EC of the Act are applicable only in respect of gain arising from transfer of long-term capital asset. In this case, the gain arose from the transfer was short-term capital gain. Therefore, the provisions of sections 54EC and 54 are not applicable at all.
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