The assessee transferred its land to a partnership in which it was one of the partners. The Assessing Officer \u00a0held that the value of the land for the proposes of stamp duty as apparent from the relevant agreement submitted by the assessee was Rs.\u20029,77,32,000. He worked out the long-term capital gains at Rs. 28,09,992 as against long-term capital loss computed by the assessee at Rs. 4,49,22,008. He substituted the value under the provision of section\u00a050C\u00a0of the\u00a0Income-tax Act, 1961\u00a0and made an addition of Rs. 96,31,700 as against the long-term capital gains computed by the assessee at Rs. 5,94,57,338 for the assessment year 2014-15. The Commissioner (Appeals) \u00a0decided in favour of assseessee. On appeal the Tribunal held that<\/p>\n
section\u00a045(3)\u00a0comes into operation only in special cases of transfer between a partnership and its partners and in such circumstances, the amount recorded in the books of account of the firm shall be taken as full value of consideration. Since the Act provides for deeming consideration to be adopted for the purpose of section\u00a048\u00a0another deeming fiction provided by way of section\u00a050C\u00a0cannot be extended to compute the deemed full value of consideration as a result of transfer of a capital asset. Thus where profits or gains arise from the transfer of a capital asset by a partner to a firm in which he is or becomes a partner by way of capital contribution, then for the purpose of section\u00a048\u00a0, the amount recorded in the books of account of the firm shall be deemed to be the full value of consideration received or accruing as a result of transfer of a capital asset. The Assessing Officer could not import another deeming fiction created for the purpose of determination of full value of consideration as a result of transfer of a capital asset by importing the provisions of section\u00a050C\u00a0.( AY.2010-11, 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45(3) : Capital gains – Transfer of capital asset to firm \u2013Capital contribution \u2014Amount recorded in books of account of firm deemed to be full value of consideration \u2014 Deeming fiction provided in S. 50C cannot be extended to compute full value \u2014 One deeming section cannot be extended by importing another deeming section [ S.45, 48 50C] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14420","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3KA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14420"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14420\/revisions"}],"predecessor-version":[{"id":14421,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14420\/revisions\/14421"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}