Transfer of Asset – whether covered by the word “otherwise” ...

Asset Transfer in Partner Accounts Qualifies as Distribution u/s 45(4) of Income Tax Act.

December 22, 2012

Case Laws     Income Tax     AT

Transfer of Asset – whether covered by the word “otherwise” contained in section 45(4) -Once the assets have been removed from the capital account of the partners and have been credited to the current account, the partners are free to withdraw the said amount as and when they require. Therefore, it is a clear cut case of transfer of capital assets by way of distribution which is covered by the word “otherwise” contained in section 45(4). - AT

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