https://www.taxtmi.com/caselaws?id=19365 During the subsistence of a partnership, immovable property of the firm cannot be taken out of the firm and allotted to partners by mere book entries, because such an arrangement amounts to a transfer or release of interest in specific immovable property and requires a registered instrument. The dissolution cases relied on were distinguished since they concerned distribution on dissolution, not transfer while the firm continued. As the property remained an asset of the firm until a legally effective transfer, the capital gain on its sale was assessable in the firm's hands. The reference was answered against the assessee and in favour of the Revenue. en-us Wed, 30 Sep 1992 00:00:00 +0530 Thu, 05 Nov 2009 16:49:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19365 During the subsistence of a partnership, immovable property of the firm cannot be taken out of the firm and allotted to partners by mere book entries, because such an arrangement amounts to a transfer or release of interest in specific immovable property and requires a registered instrument. The dissolution cases relied on were distinguished since they concerned distribution on dissolution, not transfer while the firm continued. As the property remained an asset of the firm until a legally effective transfer, the capital gain on its sale was assessable in the firm's hands. The reference was answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Wed, 30 Sep 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19365