The implication on the retiring Partner is that he or she will faces capital gains tax (LTCG/STCG) on the excess of consideration over their capital account, calculated at book value. No revaluation means a potentially lower payout and gain, but also less economic recognition of asset appreciation. As regards the Partnership Firm, there is no… (read more)

Reopening an assessment under Section 147 of the Income Tax Act requires the Assessing Officer (AO) to have "reason to believe" that income chargeable to tax has escaped assessment. This belief must be based on tangible material and not mere suspicion or unverified third-party information. In your client’s case, the IT Department relied on information… (read more)