ITAT Chennai Deletes Capital Gains Addition on Profit-Sharing Realignment in LLP Reconstitution

Gokulakrishna Vs DCIT (ITAT Chennai) The solitary issue   is with regard to confirmation of addition made under short term capital gain on the amounts credited to the partners’ current account as a consideration against the sacrificing ratio on admission of new partner. Assessee is one of the partners in CRCL, a Limited Liability Partnership (LLP). Consequent upon induction of Elior India(EI) as a partner with 51% stake by contributing ₹.31.75 crores into CRCL of which ₹.19.88 crores has been credited to the existing partners’ current account in their respective sacrificing ratio in ...