Capital gain tax

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vibhor vijay (Querist)
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01 December 2018 Capital assets (machinery) transferred to partner by firm at the time of dissolution where one partner is taken over all the assets of firm.
Is there any tax liability arises on firm ?

Amol S Joglekar

Amol S Joglekar (Expert)
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02 December 2018 please go through sec 45 (4) The profits or gains arising from the transfer of a capital asset by way of distribution of capital assets on the dissolution of a firm or otherwise, shall be chargeable to tax as the income of the firm 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.