regarding capital contribution to firm

[Guest]

assessee contributed his house along with land to a firm which was now transferd (not registered) to firm by partenership deed. in furtherance of partenrship deed firm demolished the same for purpose of making commercial complex.After an year there was dispute in partners & the land (only one roof constructed) was again taken over by the assesse partner. can now the partner be taxed u/s 45(3) of the act where possession was again taken back.

kindly guide

[CAGOPALJI AGRAWAL]

As per section 2(47)(vI), your transaction falls under section 45(3), but the facts of the case may allow to plan otherwise under the circumstances. 

AI Summary

Partner's Repossession of Land Post-Dispute: Tax Implications Under Section 45(3) of Income Tax Act Explored. (3) A partner contributed his house and land to a firm, which was then transferred to the firm via a partnership deed. The firm demolished the property to build a commercial complex. After a year, due to a dispute, the partner repossessed the land, which had only one roof constructed. The query is whether the partner can be taxed under section 45(3) of the Income Tax Act upon repossession. The response suggests that while the transaction falls under section 45(3), the specific circumstances might allow for alternative tax planning.