https://www.taxtmi.com/caselaws?id=19097 A partner's contribution of personal assets to a partnership firm can fall within the concept of transfer under section 2(47) and may engage capital gains under section 45, but taxability depends on whether the arrangement is shown to be a sham or colourable device. Where the firm is genuine and the Revenue does not establish that the transaction is a ruse to convert assets into money while retaining their benefit, capital gains do not arise on the contribution. On the stated facts, no such device was proved, so the issue was answered in favour of the assessee. en-us Thu, 12 Jan 1995 00:00:00 +0530 Wed, 04 Nov 2009 10:23:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19097 A partner's contribution of personal assets to a partnership firm can fall within the concept of transfer under section 2(47) and may engage capital gains under section 45, but taxability depends on whether the arrangement is shown to be a sham or colourable device. Where the firm is genuine and the Revenue does not establish that the transaction is a ruse to convert assets into money while retaining their benefit, capital gains do not arise on the contribution. On the stated facts, no such device was proved, so the issue was answered in favour of the assessee. Case-Laws Income Tax Thu, 12 Jan 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19097