Retiring partner to pay capital gain tax on excess amount received against Capital A/c

Savitri Kadur Vs DCIT (ITAT Bangalore) Conclusion: When the partnership firm paid lump-sum amount to retiring partner, it was paid in consideration of her retirement in the partnership and assignment of her interest to other partners, the transaction would amount to transfer u/s 2(47) and liable to tax excess amount over partner’s capital account under the provisions of Sec 45. Held: In the present case, on retirement, assessee gave up all her rights as partner of the firm and its assets nor was the assessee liable to pay any of its liabilities. The capital account of Assessee as on 1.4....