Law:

Section:

Section 45, read with section 2(29B) of the Income-tax Act, 1961 - Capital gains - Chargeable as - Among other assessees, R and N were partners in a firm constituted on 3-11-1967 - Consequent upon death of a partner this firm was reconstituted on 17-12-1971, while present assessees continued to be partners - On 6-11-1972 this firm was dissolved and all assets and properties of firm were allotted to present assessees - Thereafter, on 7-11-1972 R and N contributed such assets and properties to a new partnership V which was dissolved on 31-1-1975 - All co-owners of assets of dissolved firm sold said assets by sale deed dated 8-7-1975 - Whether in view of fact that right from 3-11-1967 R and N held at least 25 per cent share each in various firms, capital gains that arose to them consequent upon such sale on 8-7-1975 was be to treated as long-term capital gains - Held, yes FACTS A firm was constituted on 3-11-1967, with R, N, the present assessees, and others being its partners. This firm, consequent upon the death of one of the partners, was reconstituted on 17-12-1971 in the same name of R & Co., while the present assessees continued to be the partners. On 6-11-1972 this firm was dissolved and all the assets and properties of the firm on dissolution were allotted to the present assessees. Thereafter on 7-11-1972 R and N contributed the assets and properties which they had got on dissolution of the firm to a new partnership in the name of V. This newly constituted firm was dissolved on 31-1-1975. At that time there were 7 partners in firm V two of them being the present assessees. All the co-owners of the assets of the dissolved firm aforesaid, sold the assets of the dissolved firm by sale deed dated 8-7-1975. One of the questions which arose for consideration in the assessment proceedings of the assessees was as to whether the capital gains which these assessees had obtained as a consequence of sale deed dated 8-7-1975, were to be treated as short-term capital gains or long-term capital gains. The assessees' plea that the gains were long-term capital gains right from 3-11-1967 as they had continuously held share to a minimum of 25 per cent each in the assets…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492