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Reconstitution of firm does not constitute transfer u/s 45(4)
Case Law Details
- Case Name
- National Company Vs ACIT (Madras High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Madras High Court
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National Company Vs ACIT ( (Madras High Court)
Conclusion: Section 45(4) would not be attracted on the retirement of the two partners and consequential allotment of their share in the assets in the assessee-firm as there was no element of transfer of interest in the partnership assets by the retiring partner to the continuing partners.
Held: Assessee-company was converted into a partnership firm. At the time of retirement of two partners and admission of a new partner during the relevant year valuation of assets and liabilities of firm took place. It was held there was only a reconstitution...
