Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961: ss. 2(14) 45 - Capital asset - Profit/gain arising from transfer C thereof to be taxed as |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961: ss. 2(14), 45 - Capital asset - Profit/gain arising from transfer C thereof to be taxed as "Capital gains" -Assessees, erstwhile partners of a dissolved partnership firm - Winding up proceedings file.d to sell the assets of the firm and distribute the share thereof - Firm sold as an ongoing concern to three partners forming Association of Persons (AOP-3) - Assessees/erstwhile partners received their D net share of the value of the assets of the firm - Taxed as capital gains in the hands of assessees by Assessing Officer - Held: Result of winding up proceedings, after dissolution of firm, was to sell the assets of the firm and distribute the share thereof - On facts, it is clear that asset of the firm that was sold was capital asset within the meaning of s. 2(14) of the Act - Thus, once it is held to be the "capital asset'', gain therefrom is to be treated as capital gains within the meaning of s. 45 - Capital gains uls. 45 is deemed income which arises at a fixed point of time, viz. on the date of transfer - 'Transfer' of the assets triggered the provisions of s.45, making the capital gains subject to payment of tax at the hands of assessees - However, F business income/revenue income of the firm in the Assessment Year in question to be assessed at the hands of AOP-3 and not assessees - Companies Act, 1956 - s.583(4J(a) - Tax/Taxation. s.2(42)C - Slump sale- When not - Held: As per the definition of 'slump sale', sale in question could be treated as slump sale only if there was no value assigned to the individual assets and liabilities in such sale - In the present case, not only value was assigned to individual assets, even liabiities were taken care of - Hence, sale in question not slump sale. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2016 INSC 969 |
Petitioner | Vatsala Shenoy |
Respondent | Joint Commissioner Of Income Tax |
SCR | [2016] 12 S.C.R. 1 |
Judgement Date | 2016-10-18 |
Case Number | 1234 |
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