9911796707
TMI Blog2012 (7) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... 31.12.2009 passed by the Assessing Officer under section 143(3) of the Income-tax Act, 1961, (in short the Act ), pertaining to the assessment year 2007-08. 2. The issue raised by the Revenue in this appeal is as to whether the amount of ₹ 54,59,083/- received by the assessee on retirement from the partnership firm is liable to be taxed as long term capital gain arising on transfer of partnership rights. The facts, in brief, are that the assessee, a partner in various partnership firms , retired from the partnership firm M/s Raviraj Associates w.e.f. 31.3.2007, relevant to the assessment year 2007-08, vide deed of retirement of the same date. He was a partner to the extent of 37.5% of the shares and was paid ₹ 54,59,083/- ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the order of our co-ordinate Bench in the case of Mr Riyaz A Shaikh (supra) in support of the stand of the assessee. 6. We have carefully considered the rival contentions. We find that the Commissioner of Income-tax (Appeals) has decided the issue in favour of the assessee by following the order of our co-ordinate Bench in the case of Mr Riyaz A Shaikh (supra), wherein on identical issue, the Tribunal has held as under: We have carefully considered the rival submissions and perused the orders of the authorities below. As noted earlier, the short point involved in this appeal relates to taxability of amount received by the assessee on retirement from partnership firm. The Hon ble Supreme court in the case of Mohanbhai Pamabhai (sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Prashant S Joshi (supra) has noted the aforesaid legal position. In this circumstances the reliance placed by the authorities below on the judgment of the Hon ble Bombay High Court in the case of Prashant S Joshi (supra) has also noted the omission of section 47(ii) of the Act and insertion of section 45(4) of the Act with effect from 1.4.1988. Considering the entirety of the legal position, it has been affirmed by the Hon ble High Court that amounts received by the partner on his retirement, are exempt from capital gains tax. In this view of the matter, we find it appropriate to allow the claim of the assessee and accordingly the order of the CIT(A) is set aside. The AO is directed to delete the impugned addition. Thus, in Gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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