...right is only to a share in the division of the partnership assets on dissolution. The Supreme Court in the decision reported in Addanki Narayandppa v. Bhaskara Krishnappa...with his retirement from partnership of the value of his share in the net partnership assets as on the date of dissolution or retirement after a deduction of liabilities and prior charges..., shares in companies and interest in the firm of partnership, Messrs. Gocooldas Jamnadas and Company, Madras. One of the assets of the partnership was a house bearing No. 8, Nowroji Road, Madras, in...

...distribution of capital assets. It is difficult to accept the contention that when the receivers sold the partnership assets on 10-3-1947, they were distributing capital assets to the partner on the dissolution of...this sub-section in the case of every dissolution the partnership assets have of necessity to be sold, and, therefore, the sale of the partnership assets is part of the distribution of the partnership assets.9. In our opinion that contention is not tenable. All that S. 48 lays down is that the order in which the assets of a firm have to be applied on dissolution. The...require that the assets of the firm should of necessity be sold.10. There may be a case where on a dissolution of the partnership there may be no debts and the partners may agree...

...to the extent of his share in the partnership. On dissolution of the partnership firm, accounts are settled amongst the partners and the assets of the partnership are distributed amongst the partners...as per their respective shares in the partnership firm. Thus, on dissolution of a partnership firm, the allotment of assets to individual partners is not a case of transfer of any assets of the firm...assets. This is the legal consequence of distribution of assets on dissolution of a partnership firm. The distribution of assets may be done either by way of an arbitration award or by mutual...

...Years 1950-51 to 1952-53 the Income Tax Officer allowed depreciation aggregating to Rs 44,380 in respect of the two theatres. The partnership was dissolved on September 30, 1951, and on dissolution it was agreed between the partners, that the theatres should be returned to their original owners. In the books of account maintained by the partnership, the assets were...partners in the assets of the partnership; it does not amount to transfer of assets.5. On dissolution of the partnership, each theatre must be deemed to be returned to the original owner, in satisfaction partially or wholly of his claim to a share in the residue of the assets after...adjusting the depreciation and writing off the assets at the original value amounted to total recoupment of the entire depreciation by the partnership and on that account” proviso 2 to Section 10(2...

...the partners and after the dissolution of the partnership or with his retirement from partnership of the value of his share in the net partnership assets as on the date of dissolution or retirement...subsistence of the partnership the value of the interest of each partner qua that asset cannot be isolated or carved out from the value of the partner's interest in the totality of the partnership assets. And in regard to the latter, the value will be represented by his share in the net assets on the dissolution of...that which arises when on dissolution of the firm or on retirement a share in the partnership assets passes to the erstwhile partner. It has been held by this Court in...

...the case of reversion of the property to the same partner unless it takes place in the distribution of partnership assets on dissolution. In our view, the transfer of the property to an existing...held that, where, upon dissolution, there is relinquishment of interest of a partner in a partnership and assets are distributed by way of adjustment, that is a transaction of transfer and such...dissolution of partnership and for accounts brought by the members of family ‘A’, it was contended that since the partnership assets included immovable property and the documents recorded...

...on business of manufacturing and selling pharmaceutical products and literature relating thereto. On the dissolution of the partnership, its assets, which included goodwill, machinery, furniture...the firm is concerned amounts to a transfer of assets under Section 2(47). The question is how far is it correct to say that in law the firm as such has rights in the partnership assets liable to extinguishment upon dissolution?13. It is well-known that commercial men and accountants on the...decision dealt with the converse case and it does not necessarily follow on parity of reasoning that the distribution, division or allotment of partnership assets to partners of a firm upon its dissolution would amount to a transfer of assets as was sought to be contended by the counsel for the Revenue. Secondly, it is unnecessary for us to express any opinion on the...

...property as his right was only to a share in the division of the partnership assets on dissolution. In that judgment, reliance was placed on the decision of the Supreme Court in the case of...the house formed part of the assets of the partnership. The question, therefore, is can the house be described as “belonging to the assessees” as to enable the partners to claim the benefit of...provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in...

...property as his right is only to a share in the division of the partnership assets on dissolution ;(3) as the property was an asset of the firm, the assessees in the instant case could...assets from the share capital of the firm in which the assessee cross-objector was a partner on the ground that the assets for which exemption was claimed was held by the firm. The facts pertaining to...called property of the firm is the property of the partners and what are called debts and liabilities of the firm are their debts and liabilities. During the subsistence of the partnership, assets...

...partnership of the value of his share in the net partnership assets as on the date of dissolution or retirement after a deduction of liabilities and prior charges. It is true that even during the...stated in Lindley on Partnership, Edn., 12th at p. 375:“What is meant by the share of a partner is his proportion of the partnership assets after they have been ill...dissolution, the right of each partner to have the partnership effects sold applies to leasehold property belonging to the partnership as much as to any other stock-in-trade. No one partner can insist on...

...working partners had no right or claim against partnership assets on dissolution as per terms of the partnership deed. In the case of the assessee before us, there is not even any such restriction...conversion of individual property as partnership property on acquisition of the same on dissolution. It is, however, pointed out that the dissolution deed of Laxmi Industries dated 1-7-1980 described...that this godown devolved on the assessee on dissolution of Laxmi Trading Co., as is evident from its dissolution deed. Though-the assessee claimed that the premises was used for the assessee's business...

...property in law belongs to all the partners constituting the firm, though the partnership firm may possess a personality distinct from the persons constituting it and, therefore, on dissolution, as the firm has no separate rights of its own in the partnership assets, the...liabilities is nothing but a mutual adjustment of rights between the partners and there is no question of any extinguishment of the firm's rights in the partnership assets amounting to a transfer of assets within the meaning of section 2(47) of the Act.14. Pursuant to the inclusion of sub-section (4) in section 45, on the dissolution of...and that which arises when on dissolution of the firm or on retirement a share in the partnership assets passes to the partner. The Court held that on dissolution or on retirement what the partner gets...

...respondent be paid his share of the value in money. Such an arrangement, in our judgment, amounted to a distribution of the assets of the firm on dissolution. There is no clause in the partnership agreement providing for the method of dissolution of the firm or for winding up of its affairs. In the course of dissolution the assets of...business of manufacturing and selling pharmaceutical products and literature relating thereto. On July 27, 1946 the partnership was dissolved. The assets of the firm which included goodwill, machinery.......Provided further….Provided further that any transfer of capital assets ... on the dissolution of a firm or other association of persons...

...allotment of the partnership assets on dissolution of the firm: ...The whole concept of partnership is to embark upon a joint venture and for that purpose to bring in as capital money or...after the dissolution of the partnership or with his retirement from partnership of the value of his share in the net partnership assets as on the date of dissolution or retirement after a deduction...of liabilities and prior charges. The Supreme Court, on consideration of the dissolution, concluded that the interest of the partners of a family in the partnership assets was a...

...subsequently. He further found that the partition of the partnership assets on dissolution of the partnership of P.W. 1. and D.W. 1's father was made only under Exhibit A-1 and that Exhibit A-1 is a...evidence of P.W. 1 that the partnership properties were divided subsequent to the dissolution of the partnership after the death of Boja Gowder on 1st December, 1957, has not been challenged in cross.... 1), who were partners of 'Mutha Gowder and Company'. There was a partition subsequent to the death of Boja Gowder in the begining of 1957 after dissolution of the partnership had taken place prior to...

...) 68 ITR 240 (SC) was distinguished on the ground that, the case was in respect of distribution of partnership assets on dissolution of firm. In the case before Hon'ble Karnataka High Court, it was...partnership of the value of his share in the net partnership assets as on the date of dissolution or retirement after a deduction of liabilities and prior charges"……(p. 1304...not the case of dissolution of firm but taking away of assets by the partners during the subsistence of firm. Rejecting the argument on behalf of the assessee that there was only an adjustment of the...

...his right is only to a share on the division of the partnership assets on dissolution;As the property was an asset of the firm, the assessees in the instant case could not claim to be...members in accordance with the agreement of partnership or association for the distribution of assets in the event of dissolution of the firm or association, or, in the absence of such agreement, in...residue of the net wealth of the firm shall be allocated among the partners and members in accordance with the agreement of partnership for the distribution of assets in the event of dissolution of the firm...

...determining the value of the partners share in the net partnership assets on the date of dissolution or his retirement. In other words, the Supreme Court held that the credit entry does not represent the real...property and used for its purpose, not withstanding the fact that the working partners had no right or claim against partnership assets on dissolution as per terms of the partnership deed. In the...after the dissolution of the firm, or with his retirement from the partnership to get the value of his share in the net partnership assets existing on the date of the dissolution or retirement after...

...the Collector, Stamps, Rampur in respect of receipt of assets by the petitioner consequent upon dissolution of the partnership firm. On the dissolution of firm, petitioner had received his share of...Act by holding that the receipt of the assets from the partnership on its dissolution tantamount to sale of assets of the property. In order to understand the import of...only profits in consonance with their share in the partnership firm. There is no definite share of the partners during existence of the partnership. On dissolution of a firm the dissolution of assets and...

...the partnership firm nor dissolution or otherwise of the partnership firm has taken place. The surplus on revaluation of assets was notionally credited to the partners' capital account of all the...by any additional tangible assets or income. Therefore, the sum and substance of the submission on behalf of the assessee is that unless there is a dissolution of the partnership firm, and there is...which took a view that the firm on its own has no right but it is the partners who own jointly or in common the asset and thereby remedy the mischief occasioned. Distribution of capital assets on dissolution now is subject to capital gains tax unless it does not fall within the definition of transfer under section 2(47) What would be the effect of partners of a subsisting partnership distributing...