https://www.taxtmi.com/caselaws?id=20921 The High Court ruled in favor of the assessee, stating that the transfer of the capital asset upon becoming a partner did not attract capital gains tax under section 45 of the Income-tax Act, 1961. The court emphasized that the transaction was genuine and not a sham, as the Revenue did not claim otherwise. The court cited a Supreme Court decision that such transactions, although considered transfers under section 2(47), do not fall under capital gains tax as the consideration cannot be precisely valued at the time of transfer. The court did not allow an inquiry into the genuineness of the transaction due to the absence of evidence indicating it was a sham. en-us Mon, 07 Sep 1992 00:00:00 +0530 Wed, 18 Nov 2009 11:06:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20921 The High Court ruled in favor of the assessee, stating that the transfer of the capital asset upon becoming a partner did not attract capital gains tax under section 45 of the Income-tax Act, 1961. The court emphasized that the transaction was genuine and not a sham, as the Revenue did not claim otherwise. The court cited a Supreme Court decision that such transactions, although considered transfers under section 2(47), do not fall under capital gains tax as the consideration cannot be precisely valued at the time of transfer. The court did not allow an inquiry into the genuineness of the transaction due to the absence of evidence indicating it was a sham. Case-Laws Income Tax Mon, 07 Sep 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20921