Sec 56 - assessee was a partner in a firm

Last updated: 02 February 2009

Save Share

Court :
KERALA HIGH COURT

Brief :
Income tax - Sec 56 - assessee was a partner in a firm - Firm reconstituted after the death of one of the partners - assessee continued to be a partner in the new firm -

Citation :
Smt Visalakshy Kumaran Vs CIT (Dated: December 1, 2008)

Smt Visalakshy Kumaran Vs CIT (Dated: December 1, 2008) Income tax - Sec 56 - assessee was a partner in a firm - Firm reconstituted after the death of one of the partners - assessee continued to be a partner in the new firm - differences among partners - civil suits - firm dissolved as per court decree - however, lease right continued with the dissolved firm - sale of land on which firm was situated - to buy peace with the assessee, other two rightful owners of the land paid a sum to the assessee - payments are made in two assessment years - AO for taxing the sum under head 'income from other sources' u/s 56 in the year in which the land was sold - CIT (A) and Tribunal apportion a minimal amount towards the defunct firm's assets and rest of the sum treated as gratuitous payment taxable as 'income from other sources' - held, the payment received by the assessee is not in the nature of gratuitous payment as it was towards the settlement of disputes and giving up whatever rights the assessee had in the firm - assessee's appeal dismissed: KERALA HIGH COURT

1180 Views Comment Share Income Tax Report

Judgement posted by

Arbind Aggarwal

GST and Indirect Tax Adviser, Trainer

Hi all, Would be glad to help in the areas of my expertise that is GST and Indirect Taxation - compliance of procedures, legal opinions, litigation (drafting appeals, reply to notices), audit and management of Central Excise, Service Tax, Customs, EXIM Policy, VAT, CST and GST going forward etc. Always put origin ... Read more

View Judgements

Comments