2001 (9) TMI 34

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....IMHA BABU J.-The Revenue seeks to levy capital gains tax on a transfer which had admittedly not taken place. It relies on the fact that the firm which consisted of two partners stood dissolved by the death of one of them on March 3, 1989. There was no evidence to show that after such dissolution, the property which had belonged to the firm was transferred either to the surviving partner or to the ....

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....ing a company or a co-operative society) or otherwise, shall be chargeable to tax as the income of the firm, association or body, of the previous year in which the said transfer takes place and, for the purposes of section 48, the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer." ....

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....year in which the dissolution of the firm takes place. Until such time such capital asset is transferred by way of distribution of the assets on the dissolution of the firm no occasion arises for bringing to tax any capital gain on a transfer which has not taken place. The section itself gives no room for doubt as the year in which the capital gain is to be brought to tax is, the previous year in ....