https://www.taxtmi.com/caselaws?id=20200 When a partner introduces immovable property or other personal assets as capital into a partnership firm, the credit in the partner's capital account is treated as an internal adjustment of mutual rights, not as real consideration. Applying Sunil Siddharthbhai, the transfer does not create a debt owed by the firm and does not amount to consideration received on extinguishment of the partner's proprietary interest. On that basis, the contribution of the share in land to the firm was treated as not giving rise to taxable capital gains under the capital gains provisions of the Income-tax Act, 1961. en-us Wed, 04 Aug 1993 00:00:00 +0530 Thu, 12 Nov 2009 13:42:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20200 When a partner introduces immovable property or other personal assets as capital into a partnership firm, the credit in the partner's capital account is treated as an internal adjustment of mutual rights, not as real consideration. Applying Sunil Siddharthbhai, the transfer does not create a debt owed by the firm and does not amount to consideration received on extinguishment of the partner's proprietary interest. On that basis, the contribution of the share in land to the firm was treated as not giving rise to taxable capital gains under the capital gains provisions of the Income-tax Act, 1961. Case-Laws Income Tax Wed, 04 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20200