Aop

A aop in which a private limited company and partnership firm are members. Company provided land to aop, aop constructed building on that land and some portion of completed building was taken by both private limited company and partnership firm. Aop didn't charged any amount from both members. Now what will be the tax treatment under income tax and aop will be assessed. Aop is still in existence.
Replies (2)
Not some portion but whole completed building was taken by both private limited company and partnership firm

S,45(3) The profits or gains arising from the transfer of a capital asset by a person to a firm or other association of persons or body of individuals (not being a company or a co-operative society) in which he is or becomes a partner or member, by way of capital contribution or otherwise, shall be chargeable to tax as his income of the previous year in which such transfer takes place and, for the purposes of section 48, the amount recorded in the books of account of the firm, association or body as the value of the capital asset shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset

 

S.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 other association of persons or body of individuals (not being a company or a co-operative society) or otherwise, shall be chargeable to tax as the income of the firm, association or body, 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.]

 

This is subject to S. 50C

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