https://www.taxtmi.com/caselaws?id=36218 A firm's release deed vesting partnership property in one partner, supported by account adjustment and operative conveyance terms, was treated as a real sale rather than a mere internal reallocation; section 41(2) of the Income-tax Act was therefore attracted. The same transaction also amounted to a transfer of a capital asset, so capital gains were chargeable under section 45, while the exemption for gifts under section 47(iii) was unavailable because consideration had been adjusted and the transfer was not a gift in the ordinary sense. The excess of market value over consideration was further liable to gift-tax under section 4(1)(a), and a firm was capable of being a "person" for that purpose. en-us Fri, 16 Feb 1979 00:00:00 +0530 Sat, 20 Mar 2010 11:11:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36218 A firm's release deed vesting partnership property in one partner, supported by account adjustment and operative conveyance terms, was treated as a real sale rather than a mere internal reallocation; section 41(2) of the Income-tax Act was therefore attracted. The same transaction also amounted to a transfer of a capital asset, so capital gains were chargeable under section 45, while the exemption for gifts under section 47(iii) was unavailable because consideration had been adjusted and the transfer was not a gift in the ordinary sense. The excess of market value over consideration was further liable to gift-tax under section 4(1)(a), and a firm was capable of being a "person" for that purpose. Case-Laws Income Tax Fri, 16 Feb 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36218