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| The Tax Publishers2020 TaxPub(DT) 5003 (Mum-Trib) INCOME TAX ACT, 1961
Section 45
Money received by partner upon retirement from partnership-firm as his share in the assets of partnership concern was not a consideration for transfer of his interest in partnership to continuing partners and there was no transfer within the meaning of section 2(47) and, therefore, amount received was not assessable to capital gain.
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Capital gains - Chargeability - Money received by partner upon retirement from partnership-firm -
Assessee on his retirement from partnership firm, received a consideration of Rs. 48 crores as share in the assets of the firm as full and final settlement of his account in the firm. AO held that said amount was received in consideration of transfer of interest of assessee in the assets of firm and after deducting Rs. 1 crore from the total consideration of Rs. 48 crores, AO added the same to income of assessee as long-term capital gain under section 45. Held: Money received by partner upon retirement from partnership-firm as his share in the assets of partnership concern was not a consideration for transfer of his interest in partnership to continuing partners and there was no transfer within the meaning of section 2(47) and, therefore, amount received was not assessable to capital gain.
Followed:CIT v. B.C. Srinivasa Setty (1981) 128 ITR 294 (SC) : 1981 TaxPub(DT) 902 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 14A Rule 8D
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