Malabar Fisheries Co. v. CIT

120 ITR 49Supreme Court of India1979#5322 most cited

What is Malabar Fisheries Co. v. CIT authority for?

Distribution, division, or allotment of assets to partners upon dissolution of a firm is a mutual adjustment of rights and not a transfer of assets by the firm, as the firm does not hold separate rights in partnership assets.

22

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2013 to 2025.

Also referred to as

Malabar Fisheries Co. v. CIT · 120 ITR 49 · dissolution of firm · distribution of assets to partners · mutual adjustment of rights · no transfer of assets · extinguishment of rights

Also reported as

2 Taxmann 409

Sections most often in play

Section 45(4)Section 143(3)Section 139(1)Section 153ASection 2(47)Section 292CSection 45(1)Section 47(ii)

Issues it is cited on

construction pepenalty under section 271dsection 269tsection 269sdomestic companysection 273section 48section 269sssection 273bsection 271dsection 269section 45

Judgments citing Malabar Fisheries Co. v. CIT

Mahul Constructoin Corporation, Mumbai vs. ITO 24(1)(1), Mumbai

In the result, the appeal of assessee is allowed

ITA 2784/MUM/2017[2009-10]Status: DisposedITAT Mumbai24 Nov 2017AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am Mahul Construction Income Tax Officer, Corporation Ward 31(2)(3), M/S Thar & Co. Chartered Room No. 704, C-11, Accountants, Pratyaksh Kar Bhavan, Vs. 203, Capri, Opp. Hdil Tower, Bnadra Kurla Complex, Anant Kanekar Mar, Bandra Bandra (East), (East), Mumbai-400 051 Mumbai-400 051 Appellant .. Respondent Pan No. Aamfm5810E

For Appellant: K. Shivaram &For Respondent: Jacinta zimik Vashai, DR
Section 143(3)Section 2(14)Section 45(4)

…like payment of taxes to the Government, BMC etc., payment to unsecured creditors etc. This difference is very important. This difference is amply brought out conceptually in the judgment of the Supreme Court in the case of Malabar Fisheries Co. v. CIT[1979] 120 ITR 49 2 Taxman 409. In the present case, therefore, we are of the view that Section 45(4) is not attracted as the very first condition of transfer by way of distribution of capital assets is not satisfied. In the circumstances, the latter part of Section 45(4), which refers to computation of capital gains under Section 48 by treating fair market value o…

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)

…ip, of the value of his share in the net partnership assets as on the date of dissolution or retirement after a deduction of liabilities and other prior charges.” 19. The Supreme Court in the case of Malbar Fisheries Co. vs. CIT reported in (1979) 120 ITR 49 explaining the position of a partnership under the Partnership Act as well as Income Tax Act held as under:- “A Partnership Firm under the Indian Partnership Act, 1932, is not a distinct legal entity apart from the partners constituting it and equally in law the Firm as such has no separate rights of its own in the Partnership As…