No Tax on Transfer of Asset by Firm without consideration & Without ” dissolution ” “

Facts of the case The assessee, a partnership firm .The assessee is engaged in the business of manufacturing and trading of ‘pesticides’ and assessee holds shares of United Phosphorus Ltd (UPL) (19,20,160 shares) and shares of United Enterprises Ltd (UEL) (1,92,016 shares). .The assessee transferred the said shares to M/s. Nerka Chemicals Private Limited (NCPL) free of consideration vide the ‘traRead More…

Taxability of Firm Converted into Company

Issue Whether sale of business of firm as a going-concern to the company for a consideration of paid-up share capital amount to transfer liable to tax as capital gains? Held NO It is argued on behalf of the department before the Tribunal, for the first time, that in this case, on vesting of the properties of the erstwhile Firm in the Limited Company, there was a transfer of capital assets and,Read More…

Tax on Capital Gain on transfer of Asset to Retiring partner

Tax on Capital Gain on transfer of Asset to Retiring partner Q :whether the transfer of land belonging to the firm to the retiring partner is liable to be taxed under the head “capital gains ” and if so in whose hands ? in the hands of the firm or retiring partner ? The transfer of the asset is by the firm which is a ‘legal entity’ to the retiring partner another distinct legal entity being an ‘Read More…