section 45(3) & 50c simultaneously ?

The language in section 50C is worth noting. It states “Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both…” In case of contribution of land as capital by a partner to the partnership firm, it has been a settled position that no consideration is received or accrued as a result of such transfer. Further, section 45(3) creates a deeming fiction of an amount to calculate the “full value of consideration” for computing capital gains on the contribution of capital asset by a partner to a partnership firm. The deemed “full value of consideration” is an expression different from the phrase “consideration received or accruing” as appearing in section 50C. Hence, the amount determined as consideration in case of contribution of an immovable property by a partner to partnership firm is a deemed one, which is received by or accrued to the partner. Hence, section 50C should not be invoked in such cases and section 45(3) should apply. If section 50C was to prevail over 45(3), section 45(3) would become redundant to that extent, which does not seem to be the intention of the legislature.