2021 (11) TMI 815 - SC ORDER - Income Tax

Head Note / Extract:
Capital gain on distribution of assets - Conversion of the partnership firm into a private limited company - Violation of the conditions stipulated u/s 47(xiii) - transfer by way of distribution of assets - partners of the erstwhile firm derived benefit other than allotment of shares by way of loan credits in their favour on conversion of the partnership firm into a private limited company - HC held unless and until the first condition of transfer by way of distribution of assets is satisfied, Section 45(4) will not be attracted. Therefore, in the facts and circumstances of the case, we find that there is no transfer by way of distribution of asset - HELD THAT:- As the respondent has already availed the benefit under the scheme i.e. Vivad se vishwas.In view of the same, no further order is required. Accordingly, the special leave petition is disposed of.