Case Laws Analysis
REFERRED Pr. CIT v. Electroplast Engineers 2019 TaxPub(DT) 1934 (Bom-HC)
REFERRED Pr. CIT v. Hemlata S. Shetty 2019 TaxPub(DT) 1853 (Bom-HC)
REFERRED Pr. CIT v. R.F. Nangrani (HUF) 2018 TaxPub(DT) 2134 (Bom-HC)
REFERRED Vasumati Prafullachand Sanghavi v. DCIT 2017 TaxPub(DT) 5606 (Pune-Trib)
REFERRED Commissioner of Income Tax v. Dynamic Enterprises 2014 TaxPub(DT) 2363 (Karn-HC)
REFERRED Commissioner of Income Tax-III v. Riyaz A. Sheikh 2013 TaxPub(DT) 2688 (Bom-HC)
REFERRED CIT v. B. Venkatesam 2013 TaxPub(DT) 0116 (AP-HC)
REFERRED Prashant S. Joshi v. ITO 2010 TaxPub(DT) 1561 (Bom-HC)
REFERRED CIT v. A.N. Naik Associates 2004 TaxPub(DT) 0785 (Bom-HC)
REFERRED CIT v. Kunnamkulam Mill Board 2002 TaxPub(DT) 1305 (Ker-HC)
REFERRED CIT v. R. Lingmallu Raghukumar 2001 TaxPub(DT) 0035 (SC)
REFERRED Tribuvandas G. Patel v. CIT 1999 TaxPub(DT) 0044 (SC)
REFERRED CIT v. Anant Narhar Nimkar (HUF) 1997 TaxPub(DT) 0904 (Guj-HC)
REFERRED Additional CIT v. Mohanbhai Pamabhai 1987 TaxPub(DT) 1259 (SC)
REFERRED N.A. Mody v. CIT 1986 TaxPub(DT) 0992 (Bom-HC)
REFERRED Sunil Siddharthbhai v. CIT 1985 TaxPub(DT) 1358 (SC)
REFERRED Mcdowell & Co. Ltd. v. Commercial Tax Officer 1985 TaxPub(DT) 1186 (SC)
REFERRED CIT v. L. Raghu Kumar 1983 TaxPub(DT) 0891 (AP-HC)
REFERRED CIT v. B.C. Srinivasa Setty 1981 TaxPub(DT) 0902 (SC)
REFERRED CIT v. Tribhuvandas G. Patel 1978 TaxPub(DT) 0639 (Bom-HC)
REFERRED CIT v. Mohanbhai Pamabhai 1973 TaxPub(DT) 0093 (Guj-HC)
REFERRED CIT v. Kanpur Coal Syndicate 1964 TaxPub(DT) 0339 (SC)
 
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.

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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