Transfer of assets of partnership to retiring partners is taxable u/s. 45(4) of Income Tax Act

ITO Vs Satish Babu Kethineedi (ITAT Hyderabad) ITAT Hyderabad held that transfer of assets of the partnership to the retiring partners would amount to the transfer of the capital assets in the nature of capital gains and business profits which is chargeable to tax under section 45(4) of the Income Tax Act. Facts- The case of the assessee was selected for scrutiny and during the assessment proceedings, it was found that the assessee along with Sri Nihar Ranjan Pradhan has incorporated a company by name M/s. Digital Campus Services Private Limited and got allotted shares of the company which was...