https://www.taxtmi.com/caselaws?id=37460 A partnership firm is a distinct assessable entity, so a transfer of assets from the firm to its partners is not immune from tax consequences merely because of the partnership relationship. At the same time, transfer at book value, rather than market value, does not by itself create taxable notional profit. The Tribunal had erred in treating such a transfer as incapable of giving rise to profit as a matter of principle, but the existence and taxability of any actual profit depended on factual findings not then on record. The reference was answered against the assessee and the matter was remitted to the Tribunal for reconsideration on the existing record and any further enquiry necessary. en-us Mon, 12 Feb 1979 00:00:00 +0530 Tue, 30 Mar 2010 10:10:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37460 A partnership firm is a distinct assessable entity, so a transfer of assets from the firm to its partners is not immune from tax consequences merely because of the partnership relationship. At the same time, transfer at book value, rather than market value, does not by itself create taxable notional profit. The Tribunal had erred in treating such a transfer as incapable of giving rise to profit as a matter of principle, but the existence and taxability of any actual profit depended on factual findings not then on record. The reference was answered against the assessee and the matter was remitted to the Tribunal for reconsideration on the existing record and any further enquiry necessary. Case-Laws Income Tax Mon, 12 Feb 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37460