My friend has a LLP firm with his wife as other partner. The LLP was engaged in manpower recruitment business.
The business was sold off in July ‘2015 for Rs 30 lakh to another company. The sale included customer business, employees, customer contracts, vendor contracts and some computer assets. The sale excluded the LLP, the brand name, internet domains, websites, rental lease agreement and other fixed assets. The LLP is still in existence with no change in partnership structure - only the business was sold. The buyer runs the sold business under his own brand name.
Will there be an income tax liability for the LLP out of this sale transaction? After all sale of business is not income from operations?
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