Case Law Details
Rahas Investment (P) Ltd. Vs DCIT & Vice-Versa (ITAT Mumbai)
Conclusion: Amount received by a retired partner from its erstwhile partnership firm could not be claimed as exempt under section 10(2A) as the reading of section makes it clear that it makes profit of a firm assessed as such exempt in the hands of its partners and assessee was not at all partner in the said firm.
Held: AO denied exemption u/s.10 (2A) to assessee-company on the amount credited in its profit and loss account being share of surplus on the revaluation of assets of a partnership firm from which it had retired earlier. Tribunal held that a reading of section 10(2A) makes it clear that said section makes profit of a firm assessed as such exempt in the hands of its partners. In the instant case, assessee was not at all partner in the said firm and had retired from the firm with effect from 1-4-2009. Hence, amount received by a retired partner from its erstwhile partnership firm could not be exempt under section 10(2A).
FULL TEXT OF THE ITAT JUDGMENT
These are cross appeals by the Revenue and assessee emanating out of the order of ld. Commissioner of Income Tax (Appeals)-21, Mumbai dated 28.02.2014 and pertain to assessment year 2010-11.
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