https://www.taxtmi.com/caselaws?id=276968 Sale of partnership assets by receivers after dissolution was not a distribution of capital assets on dissolution, so the third proviso to section 12B of the Income-tax Act, 1922 did not exclude capital gains tax. The proviso applied only where the transfer itself occurred as part of distribution on dissolution; a prior sale by receivers, even if the proceeds were later to be divided among partners, fell outside it. The firm was assessable on the gain because section 41(2) allowed direct assessment of income received on its behalf, and the receivers had realised the amount for the partnership. Section 48 of the Partnership Act did not require assets to be sold on dissolution. en-us Thu, 15 Sep 1955 00:00:00 +0530 Wed, 21 Nov 2018 13:11:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276968 Sale of partnership assets by receivers after dissolution was not a distribution of capital assets on dissolution, so the third proviso to section 12B of the Income-tax Act, 1922 did not exclude capital gains tax. The proviso applied only where the transfer itself occurred as part of distribution on dissolution; a prior sale by receivers, even if the proceeds were later to be divided among partners, fell outside it. The firm was assessable on the gain because section 41(2) allowed direct assessment of income received on its behalf, and the receivers had realised the amount for the partnership. Section 48 of the Partnership Act did not require assets to be sold on dissolution. Case-Laws Income Tax Thu, 15 Sep 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276968