https://www.taxtmi.com/caselaws?id=164462 Transfer of a motorcar by a partnership firm to a partner on dissolution was held not to be a sale under Section 2(28) of the Bombay Sales Tax Act, 1959. The Court reasoned that a partnership firm is not a distinct legal entity from its partners for the purpose of its assets, and that distribution of assets on dissolution is only an adjustment of mutual rights through allotment of jointly held property. Because the transfer was made in lieu of the partner's share in the partnership assets, and not by way of a transaction between distinct parties for valuable consideration, sales tax could not be levied. The reference was answered in favour of the assessee. en-us Thu, 06 May 2010 00:00:00 +0530 Wed, 08 Apr 2026 16:33:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164462 Transfer of a motorcar by a partnership firm to a partner on dissolution was held not to be a sale under Section 2(28) of the Bombay Sales Tax Act, 1959. The Court reasoned that a partnership firm is not a distinct legal entity from its partners for the purpose of its assets, and that distribution of assets on dissolution is only an adjustment of mutual rights through allotment of jointly held property. Because the transfer was made in lieu of the partner's share in the partnership assets, and not by way of a transaction between distinct parties for valuable consideration, sales tax could not be levied. The reference was answered in favour of the assessee. Case-Laws VAT / Sales Tax Thu, 06 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164462