Transfer of assets to a partner (Income Tax)

This query is : Open

( Author )
16 July 2012

Dear Experts
Can an Partnership firm can it assets to its partner ?
What will be value of such transfer ?
(partnership firm is not dissolving it is continuing its operation)

CA.Sourabh Sethia

( Expert )
17 July 2012

it will be covered under the head capital gains
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.

jigar Dedaniya

( Author )
17 July 2012

Thank You CA Sourabh
It would be wrong if we transfer the asset at it written down value ?
(asset is an non functional )