https://www.taxtmi.com/caselaws?id=5210 The Supreme Court held that the distribution of assets of a firm upon its dissolution does not constitute a transfer of assets under Section 34(3)(b) of the Income Tax Act, 1961. The Court emphasized that a partnership firm is not a distinct legal entity separate from its partners, and the distribution of assets upon dissolution is a mutual adjustment of rights among the partners, not a transfer. Consequently, the development rebate allowed to the firm could not be withdrawn under Section 34(3)(b). The appeals were allowed, and the revenue was ordered to pay the costs of the appeals to the appellant. en-us Wed, 19 Sep 1979 00:00:00 +0530 Mon, 16 Mar 2015 10:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5210 The Supreme Court held that the distribution of assets of a firm upon its dissolution does not constitute a transfer of assets under Section 34(3)(b) of the Income Tax Act, 1961. The Court emphasized that a partnership firm is not a distinct legal entity separate from its partners, and the distribution of assets upon dissolution is a mutual adjustment of rights among the partners, not a transfer. Consequently, the development rebate allowed to the firm could not be withdrawn under Section 34(3)(b). The appeals were allowed, and the revenue was ordered to pay the costs of the appeals to the appellant. Case-Laws Income Tax Wed, 19 Sep 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5210