Assessee contributed his undivided title and rights in land as its capital contribution to a duly registered AOP formed by it with two other entities vide an article of agreement.\u00a0 Amount was credited to capital account of assessee. Assessing Officer held that there was transfer of capital asset as per section 2(47)\u00a0 and added as business income of the assessee. CIT(A) deleted\u00a0 the addition. On appeal\u00a0 the Tribunal held that\u00a0\u00a0 the assessee had relinquished its right in land in favour of AOP and, therefore, as per section 2(47) there was a transfer of capital asset. Accordingly, transaction of land introduced by assessee as his share of capital in AOP was taxable under section 45(3) and value of land which was credited in books of account of AOP would be deemed to be full value of consideration as a result of transfer of land. (AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45(3) : Capital gains-Transfer of capital asset to firm-AOP-BOI-Transfer undivided title and rights in a land capital asset to AOP-Capital contribution-Amount credited to capital account-Transfer of capital asset-Taxable under section 45 (3) [S. 2(47 (ii)] <\/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-43896","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bq0","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43896","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=43896"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43896\/revisions"}],"predecessor-version":[{"id":43897,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43896\/revisions\/43897"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}