Electronic WhatsApp evidence without authentication or independent corroboration cannot sustain an unexplained-investment addition based on third-part...
Mutual current-account transactions excluded from deemed dividend treatment where no fresh borrowing arose; unsupported unsecured-loan addition also f...
The CIT (Appeals) correctly invoked Section 45(4) to tax the increase in partners' capital accounts due to revaluation of firm assets, as this constitutes transfer of capital assets by the firm. The Supreme Court in Mansukh Dyeing case held revaluation and crediting partners' accounts is a transfer u/s 45(4). However, the CIT (Appeals) erred in considering the revalued amount as full value of consideration u/s 48. Fair market value on the transfer date should be considered, which the assessee proved as Rs. 7 lakh per acre based on Sub-Registrar's certificate. Capital gains are to be computed u/s 45(4) using this fair market value. The matter was decided partly in favor of the assessee.
The CIT (Appeals) correctly invoked Section 45(4) to tax the increase in partners' capital accounts due to revaluation of firm assets, as this constitutes transfer of capital assets by the firm. The Supreme Court in Mansukh Dyeing case held revaluation and crediting partners' accounts is a transfer u/s 45(4). However, the CIT (Appeals) erred in considering the revalued amount as full value of consideration u/s 48. Fair market value on the transfer date should be considered, which the assessee proved as Rs. 7 lakh per acre based on Sub-Registrar's certificate. Capital gains are to be computed u/s 45(4) using this fair market value. The matter was decided partly in favor of the assessee.
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