{"id":4759,"date":"2019-04-08T08:05:32","date_gmt":"2019-04-08T08:05:32","guid":{"rendered":"http:\/\/itatonline.org\/digest\/d-s-corporation-v-ito-tm-mum-trib-www-itatonline-org\/"},"modified":"2019-04-08T08:05:32","modified_gmt":"2019-04-08T08:05:32","slug":"d-s-corporation-v-ito-tm-mum-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/d-s-corporation-v-ito-tm-mum-trib-www-itatonline-org\/","title":{"rendered":"D. S. Corporation v. ITO (TM ) (Mum.)(Trib.) www.itatonline.org"},"content":{"rendered":"

There was difference of opinion amongst the members and the reference was made to third member. The two questions referred for consideration is\u00a0 as under:<\/p>\n

\u201d1. Whether on the facts and in the circumstances of case, where on revaluation of asset being land held by the partnership firm which resulted into enhancement of value of asset and this enhanced amount credited in capital account of partners and when a retiring partner takes amount in his capital account including enhanced value of asset, it gives rise to Capital Gain under section 45(4) r.w. Section 2(14) of the Income Tax Act.\u201d<\/p>\n

    \n
  1. \u201cWhether on the facts and in the circumstances of the case, is there any transfer of capital asset on dissolution od firm or \u201cother wise\u201d within the meaning of Section 45(4) r.w. Section 2(14), in case the money equivalent is paid by partnership firm to the retiring partner and whether this money equivalent to enhances portion of the asset revalued constitutes capital asset for the purpose of Section 45(4) r.w. Section 2(14) of the Income -tax Act\u201d<\/li>\n<\/ol>\n

    Third members held that, the revaluation of asset being land held by the partnership firm which results into enhancement of value of asset and this enhanced amount credited in capital account of partners and when a retiring partner takes amount in his capital account including enhanced value of asset, it does not give rise to Capital gains.\u00a0 Both the questions are answered in favour of the assessee. <\/strong>(ITA Nos 3526 & 3527 MUM\/2012, dt. 10.01.2019)(AY. 2006-2007,\u00a0 2007-2008)<\/p>\n","protected":false},"excerpt":{"rendered":"

    S. 45(4) : Capital gains-Distribution of capital asset\u2013Retiring partner-The revaluation of asset being land held by the partnership firm which results into enhancement of value of asset and this enhanced amount credited in capital account of partners and when a retiring partner takes amount in his capital account including enhanced value of asset, it does not give rise to Capital gains.[S. 2(14), 45]<\/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":[1],"tags":[],"class_list":["post-4759","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1eL","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4759","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=4759"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4759\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=4759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=4759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=4759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}