Can include land in partnership firm.

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This discussion addresses whether land purchased by two partners in their individual names, and used for a factory, can be declared in the partnership firm's IT returns. The consensus is that the land cannot be directly shown in the firm's balance sheet unless it has been legally transferred to the firm through a deed. Since the registered document names the individuals, it cannot be declared as a partnership asset without this formal transfer.

Ashim kr Ray

Ashim kr Ray (Querist)
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01 September 2021 Two Partner combined purchase a land in their own name,and construct a factory.
Now in partnership IT return whether the land have to be shown or not. As land is not purchase in the name of factory.

Please suggst

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 September 2021 Land can be shown in firm ITR. Land can't be purchased in the name of the firm.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 September 2021 When the registered document specify land purchased in the name of two individuals, it cannot be declared in partnership BS, unless the same has been transferred to the firm by any legal deed.

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