https://www.taxtmi.com/caselaws?id=773287 ITAT Chennai held that revaluation of partnership firm assets and admission of new partners resulting in reduced profit-sharing ratios for existing partners does not constitute a taxable transfer under section 2(47). The tribunal ruled that partners have no defined share in firm assets during partnership subsistence, so realignment of profit-sharing ratios upon introducing new partners involves no relinquishment of asset ownership. The revaluation and credit to partners' capital accounts lacks transfer element for capital gains taxation. Amendments under Finance Act 2021 introducing sections 9B and 45(4) are prospective and inapplicable to assessment year 2017-18. Addition of short-term capital gains tax deleted. en-us Tue, 17 Jun 2025 00:00:00 +0530 Fri, 20 Jun 2025 08:34:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773287 ITAT Chennai held that revaluation of partnership firm assets and admission of new partners resulting in reduced profit-sharing ratios for existing partners does not constitute a taxable transfer under section 2(47). The tribunal ruled that partners have no defined share in firm assets during partnership subsistence, so realignment of profit-sharing ratios upon introducing new partners involves no relinquishment of asset ownership. The revaluation and credit to partners' capital accounts lacks transfer element for capital gains taxation. Amendments under Finance Act 2021 introducing sections 9B and 45(4) are prospective and inapplicable to assessment year 2017-18. Addition of short-term capital gains tax deleted. Case-Laws Income Tax Tue, 17 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773287