CIT v. A.N.Naik Associates

265 ITR 346High Court2004#4903 most cited

What is CIT v. A.N.Naik Associates authority for?

Capital gains arising from the distribution of capital assets on the dissolution of a firm or other association of persons, or otherwise, are taxable under section 45(4) based on the fair market value of the asset on the date of transfer. This applies even to reconstitutions of partnership businesses as part of a family settlement.

24

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2012 to 2025.

Also referred to as

CIT v. A.N. Naik Associates · section 45(4) · capital gains · distribution of capital assets · dissolution of firm · reconstitution of partnership · fair market value

Also reported as

136 Taxmann 107

Sections most often in play

Section 139(1)Section 143(3)Section 2(47)Section 45(1)Section 45(4)Section 47(ii)

Judgments citing CIT v. A.N.Naik Associates

DCIT 24(1), Mumbai vs. Vaibhav Industries, Mumbai

In the result, the Revenue’s appeal for A

ITA 3052/MUM/2014[2010-11]Status: DisposedITAT Mumbai16 Mar 2016AY 2010-11

Bench: Shri Jason P. Boaz & Shri Sandeep Gosaindcit, Circle 24(1) M/S. Vaibhav Industries C-13, Pratyaksh Kar Bhavan 103, Tulsi Niwas, Pushtikar Vs. Bandra (E), Mumbai 400051 Co-Operative Society Jogeshwari (W) Mumbai 400012 Pan - Aadfv5521A Appellant Respondent

For Appellant: Shri Javed AkhtarFor Respondent: None
Section 143(3)Section 2(47)Section 45(4)Section 48

…IN THE INCOME TAX APPELLATE TRIBUNAL "F" Bench, Mumbai Before Shri Jason P. Boaz, Accountant Member and Shri Sandeep Gosain, Judicial Member DCIT, Circle 24(1) M/s. Vaibhav Industries C-13, Pratyaksh Kar Bhavan 103, Tulsi Niwas, Pushtikar Vs. Bandra (E), Mumbai 400051 Co-Operative Society Jogeshwari (W) Mumbai 400012 PAN - AADFV5521A Appellant Respondent Appellant by: Shri Javed Akhtar Respondent by: None Date of Hearing: 24.02.2016 Date of Pronouncement: 16.03.2016 O R D E R Per Jason P. Boaz, A.M. This appeal by the Revenue is directed against the order of the CIT(A)- 34, Mumbai dated 28.02.2014 for A.Y.…

Electroplast Engineers, Mumbai vs. ACIT Cir 24(3), Mumbai

In the result, appeal of the assessee is allowed

ITA 5363/MUM/2014[2010-11]Status: DisposedITAT Mumbai02 Nov 2015AY 2010-11

Bench: Shri D. Karunakara Rao & Shri Amit Shukla

For Appellant: Shri P MurlidharFor Respondent: Shri Neil Philip
Section 143(3)Section 45(4)

…ayment made to the partners is on account of transfer of a capital asset and same is chargeable u/s 45(4). While holding so, he has referred and relied upon the decision of Hon’ble Jurisdictional High Court in case of CIT vs. A.N. Naik Associates, reported in 265 ITR 346, wherein their Lordships have interpreted the expression “otherwise” as provided in section 45(4), which is to be read with the word transfer of capital assets by way of distribution, which not only includes cases of dissolution but also the case of subsisting partners of the partnership firm transferring the assets in favour of the retiring part…

The Commr of Income Tax vs. M/S Dynamic Enterprise

The appeal stands dismissed

ITA/1414/2006HC Karnataka16 Sept 2013

Bench: This Bench.

Section 148Section 2(47)Section 45(4)

…, Section 45(4) has no application to the facts of this case. 27. In Gurunath’s case (supra), the Division Bench of this Court followed the judgment of the Bombay High Court in the case Commissioner of Income Tax Vs. A.N.Naik Associate - (2004) 265 ITR 346 (BOMBAY). In Naik’s case, the asset of the partnership firm was transferred to a retiring partner by way of a deed of retirement. A memorandum of family settlement was entered into and the business of those firms as set out therein was distributed in terms of the family settlement as the party desired that various matters consisting the bu…

The Commissioner of Income Tax vs. M/S.Gayathri Enterprises

ITA/274/2004HC Karnataka04 Jul 2012

Bench: B.MANOHAR,D.V.SHYLENDRA KUMAR

Section 260Section 260ASection 45

…of section 45[4] of the Act. 12 11. In support of such submission, Sri. M V Seshachala, learned counsel has placed reliance on the Judgment of the Bombay High Court in the case of ‘THE COMMISSIONER OF INCOME TAX v. A N NAIK & ASSOCIATES’ reported in [2004] 265 ITR 346 [Bom] which has been followed and applied by this court in the case of ‘COMMISSIONER OF INCOME TAX v. GURUNATH TALKIES’ reported in 328 ITR 59. The two cases wherein the legislative history of section 45[4] read with section 2[47] had been elaborately discussed and therefore urges that the Tribunal is definitely in error in not following the rati…