https://www.taxtmi.com/caselaws?id=178135 On discontinuance of a partnership business, a bona fide distribution in specie of trading stock among partners is treated as a commercial transaction, not a mere self-dealing adjustment, so the Revenue may treat it as a business dealing. However, where the distribution is made at an agreed and genuine book value, the taxing authority cannot substitute a higher market value unless the arrangement is shown to be sham or unreal. The valuation for assessment therefore follows the agreed book figure rather than a notional market surplus when the transaction is bona fide. en-us Fri, 10 Sep 1965 00:00:00 +0530 Thu, 28 Jan 2016 18:41:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178135 On discontinuance of a partnership business, a bona fide distribution in specie of trading stock among partners is treated as a commercial transaction, not a mere self-dealing adjustment, so the Revenue may treat it as a business dealing. However, where the distribution is made at an agreed and genuine book value, the taxing authority cannot substitute a higher market value unless the arrangement is shown to be sham or unreal. The valuation for assessment therefore follows the agreed book figure rather than a notional market surplus when the transaction is bona fide. Case-Laws Income Tax Fri, 10 Sep 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178135