In a partenrship firm wid 2 partners, i f1 of the partners gifts his share of partnership 2 d other partner after which the said partenrship turns out 2 b a proprietorship , does sec 45 (4) apply in dis case ?
26 October 2009
Sec 45(4) applies in case of distribution of capital assets by a firm to its partners.
So,
a) Sec 45(4) does not apply in case of gift given by one partner to another partner.
b) But, after this the Partnership gets converted into Proprietor Concern the firm has to transfer its Capital assets to partners.Here this section 45(4) comes into picture.
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