| Question And Answer | |
|---|---|
| Subject: | Whether excess amount more than his capital outstanding paid to retring partner can be claim as deduction |
| Category: | Income-Tax |
| Querist: | manali |
| Answered by: | Reply of the Expert is awaited; |
| Tags: | partnership firm |
| Date: | May 2, 2024 |
Assessee is partnership firm having 4 partners having equal share and engaged in the construction of project . The assessee firm has only one land which is disclosed as stock in trade the value of the same in the books is 2 cr and today’s FMV is 20 cr.
In the said firm three more partners are added who were ready to contribute the capital as well as use there infrastructure for executing the project on the said land.
After 2 months original four partners express there desire from the partnership and it is agreed that they will be paid 18 crs in addition to their balance in capital account of Rs. 2 Cr.
whether the excess amount will be claim as deduction in the hands of firm as firm is having only land as stock in trade and held as current assets
Reply of the Expert is awaited. Please check back later