ITAT partially allowed revenue's appeal. The tribunal upheld ...

Legal Battle Over Capital Gains: Partner's Land Exemption Upheld, Firm Taxed Only on Owned Structures and Machinery

April 28, 2025

Case Laws Income Tax AT

ITAT partially allowed revenue's appeal. The tribunal upheld that additional evidence was admitted in violation of Rule 46A, but this did not materially impact the case's outcome. The land in question belonged to a partner, not the firm, thus long-term capital gains could not be charged to the firm. The tribunal directed the AO to compute gains only from building structures and plant machinery owned by the firm. The assessment proceedings were found valid, and the cross-objections were dismissed. The ultimate relief granted to the assessee was maintained, with the revenue's appeal being partly allowed on procedural grounds.

View Source

← Previous Next →

ITAT partially allowed revenue's appeal. The tribunal upheld ...

Legal Battle Over Capital Gains: Partner's Land Exemption Upheld, Firm Taxed Only on Owned Structures and Machinery

April 28, 2025

Case Laws Income Tax AT

You may also like:

Short term capital gain - capital gain arose from transfer of land to the partnership firm by way of capital contribution as the assets was converted to Fixed Capital...

The appellant firm had purchased lands for business purposes but did not carry out any business activities on those lands. The firm transferred the amounts pertaining to...

Exemption on agricultural income - firm is not the owner of such agricultural land but the partners - assessee firm though not being the owner of the agricultural land...

Short Term Capital Gain - conversion of the Partnership Firms into Companies - Additions in the hands of partners - CIT (Appeals) correctly deleted the additions on...

Capital gain - crediting the enhanced value of the land, which belonged to the firm, to the current account of the partners of the firm and by treating it as loan from...

Taxability in the hands of partners v/s firm - transfer of capital asset by firm to partners - There is no merit in the arguments advanced by assessee, that transfer of...

Exemption from payment of sales tax - poultry farm on leased land - exemption was rejected on the ground that the assessee was not the owner of the land where the farm...

Surplus earned on the sale of plot - ‘capital gain‘ OR ‘business income’ - There is no clause in the partnership deed about making investment in the land and to earn...

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 Appellate Tribunal considered whether the sale proceeds of residential units should be treated as capital gains or business receipts. It was found that the...

Characterization of receipt - amount received by the appellant upon retirement from the partnership - taxability as capital gains under the Income Tax or not? - The High...

Exemption u/s 54B - Agriculture land - vacant land - if the AO comes to the conclusion that the impugned lands are agricultural lands, still the capital gain arising on...

Capital Gain on the acquisition of Land - Claim of exemption u/s 10(37) - The SDM report categorically mentioned that no compensation for standing crops was given to the...

Capital gain on sale of land - Nature of land sold - agricultural land - calculation of shortest route - , although there is no doubt that conflicting reports were...

Capital gain u/s 45 - compensation received by a partner from another partner for relinquishing rights in the partnership firm - the compensation received by the...

Quick Updates: