1976 (10) TMI 33

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..... Commissioner of Income-tax, Patiala-II, Patiala, the Income-tax Appellate Tribunal, Amritsar Bench, has referred the following question of law to us for our opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee-firm is not liable to pay tax on capital gains under section 114 of the Income-tax Act, 1961 ? " The assessee .....

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..... and 182 of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), and some cases decided by the Income-tax Appellate Tribunal, Ahmedabad Bench and Bombay Bench. The Appellate Tribunal held : " However, if tax is levied on the capital gains also on a registered firm, it would amount to hardship inasmuch as the partners will have to pay again tax on the capital gains allocated to their .....

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..... fit from the above-mentioned section. In K. I. Viswambharan & Brothers v. Commissioner of Income-tax [1973] 91 ITR 588 (Ker) [FB], a Full Bench of the Kerala High Court has said that for purposes of assessment to tax, the Act treats a registered firm as an entity distinct from the partners. Under the specific provisions of the Partnership Act relating to the property of a firm and the judicial pr .....

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