Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 136 - AT - Income TaxAddition u/s 45(4) on account of revaluation of assets - distribution of the revaluation amount to the partners capital accounts during the continuation of the firm - whether or not the credit of the revaluation surplus to the capital accounts of the partners, including the retiring partner, wherein in the latter case the amount was transferred to a loan account, did tantamount to distribution of the capital assets of the firm otherwise than by dissolution of the firm within the meaning of Sec. 45(4) ? - HELD THAT:- The issue involved in the case before us is squarely covered by the aforesaid order passed by the Tribunal in the case of the “sister concern” of the assessee, viz. M/s Amardeo Plastic Industries . Accordingly, respectfully following the view therein taken by the Tribunal, we, herein conclude, that the revaluation of the assets of the firm and crediting of the capital accounts of the partners could not have been brought within the meaning of Sec. 45(4) of the Act. We, thus, in terms of our aforesaid observations set-aside the order of the CIT(A) and vacate the addition made by the A.O u/s 45(4) of the Act. - Appeal of assessee allowed.
|