Transfer of an industrial undertaking from urban to rural area by a partnership firm qualifies for...

Transfer of an industrial undertaking from urban to rural area by a partnership firm qualifies for exemption u/s 54G of the Income Tax Act. The assessee, a partner in the firm, shifted the existing plant, machinery, and equipment to a rural area and invested further in the new undertaking. Despite the investment being made by the firm, the assessee is eligible for exemption as the partnership assets belong to the partners. The conditions for claiming exemption u/s 54G, such as shifting the undertaking, transferring assets, and making new investments within the stipulated period, have been fulfilled. The firm's name is merely a convenience, and partners have a specific interest in the firm's property. Supreme Court rulings support the princi..... .....

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