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2016 (5) TMI 582 - AT - Income TaxTaxability of capital gain in the hands of the partnership firm - assessee contended that the partners have already paid taxes in their individual hands and taxation on the firm for the same capital gains would amount to double taxation - Held that:- We notice that the issue is squarely covered against the assessee by the decision of the jurisdictional High Court in the case of CIT vs. A N Naik Associates, (2003 (7) TMI 46 - BOMBAY High Court ) discussed by the CIT(A) in its order. The consideration received on transfer of the property by the partnership is taxable in the hands of the partnership firm in view of the expression ‘otherwise’ employed in S. 45(4) of the Act. Accordingly, we are in agreement with the view of the CIT(A) that the impugned capital gains are taxable in the hands of the partnership firm. We also do not find any merit seeking relief on the ground that the partners have already paid taxes in the individual capacity. The Hon’ble Supreme Court in the case of ITO vs. Ch. Atchaiah (1995 (12) TMI 1 - SUPREME Court ) has held that the Revenue has no option but to tax the income in the right hands irrespective of the fact that wrong person has already been taxed for the particular income. Hence, we decline to interfere with the order of the CIT(A) appealed against. - Decided against assessee
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