The assessee was one of four partnership in the firm. The assessee along with other partners purchased a land which was transferred to the firm as current asset.   Land was treasferred to the firm at book value and the account of the partner was credited. The firm shown the said asset under the heading current assets in the balance sheet. The firm revalued the asests in their books of account. The assessment of the the partner was reopened on the ground that the land was undervalued while introducing the land to the firm. On appeal the Tribunal held that reassessment was not valid. On merit the Tribunal held that partners transferred the land to the firm by way of capital contribution and value was credited to their capital account. There was no profit in the hands of partners upon transfer of land to the firm. The Tribunal also held that the partners the asset to the firm at book value and the section 45(3) is applicable to only in respect of a  capital asset. On the facts the partners transferred current asset and not a capital asset. The asset was transferred in the financial year March 31, 2006. The Assessing Officer invoked the provision of section 45(3) in the assessment year 2008-09. The Tribunal also held that section 45(3) does not seek to substitute by any other figure the value agreed between the partners at which the asset is transferred by a firm. The Tribunal quashed the reassessment proceedings and also decided the issue on merit in favour of assesee. On appeal High Court affirmed the order of the Tribunal. Referred,  Chainrup Sampataram  v. CIT (1953) 24 ITR 481 (SC). (AY. 2008-09)