Wednesday, 5 February 2014

No exemption on succession of a firm by co. if partners got consideration in form of ‘loan’ instead

IT: Where prior to conversion of partnership firm into company, land belonging to partnership firm was revalued as per market value and realization was credited to partners' current account maintained with partnership firm as per their profit sharing ratio and value of land was treated as loan in hands of company, such transaction would be subjected to capital gains tax


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