Addition towards capital gains u/s 45(3) - transfer of land as ...
Income Tax
February 7, 2022
Addition towards capital gains u/s 45(3) - transfer of land as Capital contribution in the Partnership firm - Tribunal agreed with CIT(A) that after conversion of inventory into fixed asset the firm revalued the developed land including construction thereon in order to bring it in line with the current market value to justify the business assistance secured by the firm from the banks to extent of nearly ₹ 250 crores. Therefore, on facts the tribunal concluded that the revaluation was not a colourable device. - There was no withdrawal by the partners from capital accounts and therefore there cannot be any income liable to tax in their hands. - HC
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