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2016 (10) TMI 554 - ITAT PUNECapital gain - amount received by retiring partner - transfer of goodwill - Held that:- In the instant case, as noted above, the assessee as a retiring partner has received certain amount over and above the capital balance towards his share in the partnership firm. The partnership firm has continued to exist after the retirement of the assessee partner. The Revenue has treated the additional amount so received from the partnership firm as long term capital gain and sought to tax the same. However, we find that in the case of Mr. Riyaz A. Shaikh (2013 (12) TMI 248 - BOMBAY HIGH COURT ) has held amount received by a partner on retirement cannot be taxed as long term capital gain on transfer of goodwill. When a partner retires from the firm and receives share of amount calculated on the value of partnership asset including goodwill of the firm, there is no transfer of interest of the partner in the goodwill and no part of the amount received is exigible as capital gain under section 45 of the Act. - Decided in favour of assessee
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