MIDC (Industrial Area)
Land and Building was allotted to partners of the firm .
exact wordings of the deed of assignment and Transfer Order are "Land is allotted to Partners of xyz firm"
now after 12 years the said Land and Building was transferred by one
partner to another without any consideration and reflected in their Individual AIS. Both Partners are brothers (Blood Relative)
my question is whether to
consider above tfr as Tfr of Property by firm to its partner and Pay Capital Gain tax on it (Stamp Duty Value at time of tfr - Indexed cost of acquisition)
or Treat it as a Gift by brother to brother.
Thanks.
Ideally, since the owner is the 'firm', transfer of property is from firm to one of the partners.
However, the fact that one partner sold it to another partner and also the fact that the sale is shown in the AIS of one of the partners as 'seller' needs to be verified as the owner is the 'firm'.
This needs thorough checking of the agreements of sale/transfer of property and it is advisable to consult a practising CA in the matter due to contradictory facts.
CAclubindia
