Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2010 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (1) TMI 412 - HC - Income TaxRe-assessment- The assessee firm purchased a property in 1982 for a consideration of Rs. 30 lakhs. Subsequently the firm was reconstituted to admit one more partner in the name of HP. The shareholder of HP were also the partner of the assessee. The assessee firm was dissolved. The Assessing Officer accepted the income of firm for the assessment year 1985-86 as nil. The Commissioner, set aside the assessment order, with a direction to the Assessing Officer to treat the difference between the current market value of asset and cost of acquisition to be the business of the firm and tax it both in the hand of firm and partner. Held that- the Assessing officer should reopen the assessment of the partners to bring it to tax, respective income in the hands of the partners, who had apportioned the profit of the firm, in terms of partnership deed.
|