Credit in Partners Capital account on revaluation of fixed asset taxable: SC

CIT Vs Mansukh Dyeing and Printing Mills (Supreme Court) Whether amount credited on account of revaluation of fixed assets and credited to the partners’ account is liable to be taxed u/s 45(4) of the Income-tax Act,1961? The department has made a major win today in the above case when the Supreme Court held that upon revaluation of fixed asset, the credit which is made to the Partners’ capital account is liable to be taxed u/s 45(4)  and approved the decision of the Bombay high Court in the case of CIT Vs A.N. Naik Associates and Ors(2004) 265 ITR 346(Bom). The assets so revalued and the ...