Hello all,
There is a partnership form carried by three partners (father, 2 sons). On death of partner, the two sons re-sonsttuted the firm and continued the firm. Since they were unable to carry the business, and want to sell the only asset, i.e., the Land and dissolve the firm.
Since on dissolutio of the firm we have to offer capital gain tax.
My doubt is, canthe partners invest in Residential house property? Since the firm stands dissolved, how can we invest in the name of the firm in the bonds U/s 54EC?
is there any case law, which supports that the partners can invest in house property out of the sale proceeds of the land?
CAclubindia
