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TMI Blog2023 (6) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... hich it has received is attributable in other words to the share which the retiring partner would be entitled in law. The amount is far in excess. Had the amount being the same as the share, the Revenue 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 u/s 45 of the Income Tax Act, 1961. As 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 g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 appellant accordingly that the the Assessing Officer found that the assessee had hoodwinked the revenue. On the said basis, the Assessing Officer sought to bring the amount of Rs. 14,15,61,370/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount 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 taxability of above income and under which section of the Act the same is claimed as exempt. Similarly as regards the basis and quantum the managing partner of the firm M/s Landmar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntered 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 into consideration in determining the share of the retiring partner, no part of the amount received by the respondent-assessee was exigible to tax. 10) From the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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