9911796707
TMI Blog1994 (10) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of three different assessees, the office is directed to register three separate references. Preparation of additional paper books is dispensed with. The following common questions of law arising out of the combined order dated June 30, 1981, of the Income-tax Appellate Tribunal, Ahmedabad Bench "A" (hereinafter referred to as "the Tribunal"), along with the statement of the case, have been r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 509, wherein the Supreme Court has held that where a partner of a firm makes over capital assets which are held by him to a firm as his contribution towards capital, there is a transfer of a capital asset within the terms of section 45 of the Income-tax Act, 1961. The Supreme Court, while considering the question whether any profit or gain can be said to accrue or arise to the assessee when he ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se when the partnership is dissolved or the partner retires. It evidences no debt due by the firm to the partner. Indeed, the capital represented by the notional entry to the credit of the partner's account may be completely wiped out by losses which may be subsequently incurred by the firm, even in the very accounting year in which the capital account is credited. Having regard to the nature and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of section 45 of the Income-tax Act, 1961. " In view of the aforesaid decision, our answer to question No. 1 is that there was a transfer of shares when the assessee made them over to the partnership-firm as his capital contribution. The answer to question No. 2 is that when the assessee transferred his share to the partnership firm he received no consideration within the meaning of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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