CURRENT AFFAIRS

Detailed explanation-1: -Rule 11UAE of the Income Tax Rules, 1962 (herein referred to as “Rule”) was notified by the CBDT as on 24th May, 2021 for the computation the fair market value (FMV) of capital assets the purpose of clause (ii) of sub-section (2) of section 50B.

Detailed explanation-2: -The order passed by the Assessing Officer was restored. Income Tax Act 1961-Section 45(4)-Section 45(4) applicable to not only the cases of dissolution but also cases of subsisting partners of a partnership, transferring the assets in favour of a retiring partner.

Detailed explanation-3: -the price that the asset would fetch if sold in the open market on the valuation date in an arm’s-length transaction.

Detailed explanation-4: -Section 9B of the Income-tax Act, 1961 is “Income on receipt of capital asset or stock in trade by specified person from specified entity”. The said section is a deeming provision to bring distribution of capital asset or stock in trade or both, on dissolution or reconstitution within the ambit of Income.