9911796707
TMI Blog2023 (6) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... gar, Adv. ORDER 1) Leave granted. 2) The respondent was a partner in a firm. It retired on 14th August, 2008. When it retired, it received a sum of Rs. 15 crores from the partnership firm M/s. Landmark Developments. It purported to be in full and final settlement of its right, title and interest as a partner. The respondent was having 50% share in the firm. The other 50 per cent according to the appellant was being held by two other partners who had 25 per cent share each. 3) It is the case of the appellant that the consideration for payment of 15 crores received by the respondent was brought in by three incoming partners. The entire consideration paid accordingly, was debited to the account of the new partners. It is the case of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue would not have raised objection. This is in addition to the fact that the amount paid to the respondent was, in fact, brought in by the three new incoming partners. This made the amount exigible to Income Tax under the head income under the capital gains under Section 45 of the Income Tax Act, 1961. 7) Per contra, learned senior counsel for the respondent would submit that the High Court was actually right in the view it took. 8) Learned counsel for the appellant drew our attention to the statement given by the assessee himself: "9.2 From the above statement it is very clear that assessee is relying on reply filed vide letter dated 7.11.2011 and 16.12.2011 (as reproduced in para 5 and para 6 has no other explanation in respect of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the firm and also expected future expected profit. Hence, as the assessee had relinquished his rights and shares in favour of continuing partners (including new partners entered on the date of retirement deed) and has received Rs. 15 Crores as full and settlement of right, title interest. In the same taxable in the hands the assessee as Capital Gains." 9) Learned senior counsel, on the other hand, would point out that actually though the amount may appear to be in excess of the share standing to the credit of the capital account of the respondent-assessee, the amount in excess is attributable to the goodwill which, according to him, is subject matter of decisions of this Court and since goodwill under the law as it stood was to be taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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