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TMI Blog2015 (11) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... ain, if any, on transfer of property, has to be assessed only as short-term capital gain and not as long-term capital gain. Therefore, this Tribunal do not find any infirmity in the order of the lower authority and accordingly, the same is confirmed. The provisions of sections 54 and 54EC of the Act are applicable only in respect of gain arising from transfer of long-term capital asset. In this case, the gain arose from the transfer was short-term capital gain. Therefore, the provisions of sections 54EC and 54 are not applicable at all. - I. T. A. No. 1097 /Mds/ 2015 and S. P. No. 338 /Mds/ 2015 (assessment year 2009-10). - - - Dated:- 26-6-2015 - N. R. S. GANESAN (Judicial Member) and A. MOHAN ALANKAMONY (Accountant Member) R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... name of the partner and it was not transferred to the partnership firm at all. The assessee continues to be the owner of the land. According to learned counsel, the assessee had taken over only the building and other assets and excluded the landed properties of the partnership firm. Learned counsel also placed his reliance on the judgment of the Madras High Court in CIT v. S. Rajamani and Thangarajan Industries [2000] 241 ITR 668 (Mad) and submitted that for transfer of landed property, the document shall be registered. Since there is no registered document, according to learned counsel, there was no transfer of property to the partnership firm, hence, the Assessing Officer is not justified in treating the capital gain as short-term capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale of the land is long term capital gain on the ground that the assessee continues to be the owner of the property, even though the same was shown as asset in the accounts of the partnership firm. The claim of the assessee appears to be that there is no registration of document executed for transfer of the property to the partnership firm. The fact remains that the land was transferred to the account of the partnership firm and the partnership firm was enjoying the landed property as its own for the purpose of carrying on its business. Under the common law, as rightly submitted by the learned Departmental representative, registration of document is mandatory for transfer of immovable property. However, under the Income-tax Act, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon law is not a legal entity. However, under the Income-tax Act, it is a separate and distinctly assessable unit. This distinction has to be borne in mind and the partnership firm carried on its business through its partners. Therefore, for all practical purposes, under the provisions of the Income-tax Act, the partnership firm is the owner of the property and the assessee became the owner on the date on which it was re-transferred from the partnership firm. Therefore, the gain, if any, on transfer of property, has to be assessed only as short-term capital gain and not as long-term capital gain. Therefore, this Tribunal do not find any infirmity in the order of the lower authority and accordingly, the same is confirmed. 6. Now the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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