Hey Friends,
I really need guidance in the following case:
CASE FACTS:
- A partnership firm consisted of 3 partners.
- They bought, using the firm money, land for the firm ( thus it becomes Property of the Partnership Firm u/s 14 of IPA 1932)
- ONE partners retired.
- New partnership deed was framed & registered.
- IT Dept sent demand to remaining partners to pay stamp duty on transfer of property from retiring partner to the remaining partner.
(It assumed that property of partnership firm is same as that of partner. Hence on change in constitution, the same property which earlier belonged to 3 partners now belonged to 2 partners thus leading to transfer of property. Therefore stamp duty must be paid by remaining partners.)
QUERRY:
The aim of the assessee is to avoid this payment of stamp duty.
What are the relevant sections or case laws that may prove:
· This is not a transfer?
· The property of the partnership firm is not same as that of the partner?
PLSSSS GUIDE WITH YOUR VALUABLE SUGGESSIONS….
CAclubindia
