https://www.taxtmi.com/caselaws?id=119474 The court held that the distribution of assets on the dissolution of the firm amounts to a transfer, making it liable for taxation of capital gains. The firm is taxable on the distribution of its capital assets upon dissolution, as clarified by the Finance Act, 1987. The transaction was not considered a slump sale, and the distribution of cash qualifies as the distribution of capital assets. The court emphasized the fair market value of assets as the consideration received. The court upheld the CIT(A)'s approach to valuation and computation of capital gains, providing guidance on the application of section 45(4) in such cases. en-us Wed, 09 May 2007 00:00:00 +0530 Wed, 11 Jul 2012 12:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119474 The court held that the distribution of assets on the dissolution of the firm amounts to a transfer, making it liable for taxation of capital gains. The firm is taxable on the distribution of its capital assets upon dissolution, as clarified by the Finance Act, 1987. The transaction was not considered a slump sale, and the distribution of cash qualifies as the distribution of capital assets. The court emphasized the fair market value of assets as the consideration received. The court upheld the CIT(A)'s approach to valuation and computation of capital gains, providing guidance on the application of section 45(4) in such cases. Case-Laws Income Tax Wed, 09 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119474