No implications under Section 56(2)(viia) of the Income-tax Act on contribution of shares/cash by the Partner to the Partnership Firm

The Hon’ble Hyderabad Income-tax Appellate Tribunal (‘ITAT’) in its recent ruling1 has held that provisions of Section 56(2)(viia) of the Income-tax Act (‘ITA’) shall not be applicable in respect of capital contribution made (whether in cash or kind) by the Partner to the Partnership Firm (‘Firm’).
RBSA Advisors - Thumbanil Contribution Assets Partnership Firm Website Inside 2

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