https://www.taxtmi.com/caselaws?id=12505 On whether reconstitution of a partnership by admission of new partners attracts s.45(4) of the Income-tax Act, the HC held that the assessee remains the firm irrespective of changes in the number of partners, and the firm's ownership of its assets does not alter upon reconstitution. Admission or retirement of partners only adjusts partners' rights to share profits and does not involve transfer of any specific interest in the firm's immovable property, since partners have no defined proprietary right in particular assets. In the absence of change in ownership of the firm's capital assets, there is no "transfer" for s.45(4). The Revenue's appeal was dismissed and the addition was set aside. en-us Mon, 25 Mar 2002 00:00:00 +0530 Wed, 24 Dec 2025 12:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12505 On whether reconstitution of a partnership by admission of new partners attracts s.45(4) of the Income-tax Act, the HC held that the assessee remains the firm irrespective of changes in the number of partners, and the firm's ownership of its assets does not alter upon reconstitution. Admission or retirement of partners only adjusts partners' rights to share profits and does not involve transfer of any specific interest in the firm's immovable property, since partners have no defined proprietary right in particular assets. In the absence of change in ownership of the firm's capital assets, there is no "transfer" for s.45(4). The Revenue's appeal was dismissed and the addition was set aside. Case-Laws Income Tax Mon, 25 Mar 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12505