TaxTMI 
TaxTMI 
2026 (9) TMI 988
X X X X Extracts X X X X
X X X X Extracts X X X X
....ainst the Assessment Order, dated 21/12/2018, passed under Section 147 r.w.s 143(3) of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] for the Assessment Year 2011-2012. 2. The Assessee has raised the following grounds of Appeal as per 'Ground of Appeal' enclosed to memorandum of appeal in Form 36: 1. On the facts and circumstances of the case as well as the law on the subject, the Ld. CIT(A) has erred in confirming the action of the assessing officer in re-opening the assessment u/s. 147 by issuing notice u/s. 148 of the Act and thereby framing assessment u/s. 147 r.w.s. 143(3) of the Act. 2. On the facts and circumstances of the case as well as the law on the subject, the Ld. CIT(A) has erred in confir....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Assessee reiterated the stand taken before the Assessing Officer and in addition, inter alia, contended that INR.1,37,70,000/- could only be taxed as income the firm is in view of the provisions contained in Section 45(4) of the Act as held by the Hon'ble Supreme Court in case of Mansukh Dyeing and Printing Mills vs. CIT : 151 taxmann.com 306 (SC). However, the Learned CIT(A) declined to grant any relief and dismissed the appeal of the Assessee. 6. Being aggrieved, the Assessee has carried the issue in appeal before the Tribunal by way of Ground No.2 raised in the present appeal. 7. In the facts and circumstances of the present case the issue that arises for consideration is that whether the amount received by the Assessee as partn....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m) it was held by the Hon'ble Bombay High Court that the transfer of assets of the partnership to the retiring partners would amount to transfer of capital assets, attracting capital gains under Section 45(4) of the Act. 10. We note that subsequently in the case of CIT Vs. Mansukh Dyeing & Printing Mills (2022) 449 ITR 439/145 taxmann.com 151 (SC), the Hon'ble Supreme Court held that the revaluation of assets of partnership firm followed by the credit of the revaluation surplus to partners capital account was, in effect, distribution of increased value of the assets of the firm amongst the partners, and therefore, the same constituted transfer attracting the provisions contained in Section 45(4) of the Act. Therefore, it was held that th....