Capital Asset Distribution in Partnerships: Section 45(4) Allows Retiring Partners to Benefit from Revaluation Surplus Without Tax Avoidance.

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....Distribution of capital assets u/s 45(4) - partnership firm - crediting revaluation surplus to partners account settling their accounts on their retirement - It is the retiring partners who have been benefitted by receiving much more than actual capital contributed by them on account of revaluation. Thus there can be no case of tax avoidance by colorable device by the firm - AT....