{"id":29924,"date":"2022-09-24T07:07:04","date_gmt":"2022-09-24T01:37:04","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=29924"},"modified":"2022-09-24T07:07:04","modified_gmt":"2022-09-24T01:37:04","slug":"sec-454","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/sec-454\/","title":{"rendered":"Sec. 45(4)"},"content":{"rendered":"<p>Assessee is LLP engaged in the business of jewellery. The assessee has kept the non-moving items or the items which are displayed separately and the said stock is valued at cost in the year in which those were purchased. Out of the 5 partners, 3 partners have expressed their desire to retire from the LLP and continuing partners decided to admit 3 new partners in the LLP.<\/p>\n<p>The retiring partner will be paid an amount standing to their capital account as on the date of retirement i.e 30.09.2021. While working out the financials at the time of retirement, the non- moving items\/ items for display are considered at cost only. The market value of the said stock was more by Rs. 10,00,000\/- than the cost.<\/p>\n<p>The incoming partners have been admitted on the ground that they will be ready to work as a working partners and also introduce the capital in the firm.<\/p>\n<p><span style=\"text-decoration: underline;\">Issues:<\/span><\/p>\n<ol>\n<li>Whether the assessee firm is correct by not considering the market value of the non-moving items \/ items for display at the time of working the balance standing to the capital account of the retiring partner ?<\/li>\n<li>Whether provisions of section 45(4) will be attracted in this situation ?<\/li>\n<li>If yes, is there any tax implication on the retiring partners of LLP ?<\/li>\n<\/ol>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[24,546],"class_list":["post-29924","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-capital-gains","qa_tag-retirement-of-partner"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/29924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=29924"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=29924"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=29924"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=29924"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=29924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}