1976 (10) TMI 33 - HC - Income Tax

Summary

The High Court of Punjab and Haryana ruled that a registered firm is liable to pay tax on capital gains under the Income-tax Act, 1961. The court disagreed with the Appellate Tribunal's view that tax on capital gains for a registered firm would lead to hardship for partners. The court cited a Kerala High Court case stating that a registered firm is distinct from its partners for tax assessment purposes. The judgment favored the revenue and no costs were awarded.