https://www.taxtmi.com/caselaws?id=177726 Conversion of a partnership firm into a company under Chapter IX of the Companies Act, 1956, without any physical distribution or conveyance of assets, was treated as a mere change in the form of the business and not a transfer for capital gains purposes. The High Court held that such a transformation did not attract capital gains tax under Section 45 of the Income-tax Act, 1961, because the partners' interests were carried into the corporate structure rather than being extinguished by an actual transfer of assets. The addition made on that basis was therefore unsustainable and was deleted. en-us Wed, 03 Dec 2014 00:00:00 +0530 Sat, 16 Jan 2016 08:28:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177726 Conversion of a partnership firm into a company under Chapter IX of the Companies Act, 1956, without any physical distribution or conveyance of assets, was treated as a mere change in the form of the business and not a transfer for capital gains purposes. The High Court held that such a transformation did not attract capital gains tax under Section 45 of the Income-tax Act, 1961, because the partners' interests were carried into the corporate structure rather than being extinguished by an actual transfer of assets. The addition made on that basis was therefore unsustainable and was deleted. Case-Laws Income Tax Wed, 03 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177726