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2012 (7) TMI 652 - ITAT HYDERABAD
Capital Gains - amount received from partnership firm on retirement - payment of consideration in cash - share of goodwill - capital asset u/s 2(14) - transfer u/s 2(47) - held that:- it was a case of lump sum payment in consideration of the retiring partner assigning or relinquishing her share or right in the partnership and its assets in favour of the continuing partners. - the manner of the retirement in case of the assessee is such that it can be regarded as assigning or relinquishing by the retiring partner of her share or right in the partnership firm and its assets in favour of the continuing partners. - the assessee satisfies the parameters and, therefore, there was a transfer of interest of the retiring partner over the assets of the partnership firm on her retirement and, therefore, there was a liability to tax on account of capital gain.