S. 45(4) not applies if retiring partner takes only money for his share & if there is no distribution of capital assets among partners

Bombay High Court held that when the assets of the partnership is transferred to a retiring partner, the partnership which is asses sable to tax ceases to have a right or its right in the property stands extinguished in favor of the partner to whom it is transferred. If so read, it will further the object and the purpose and intent of the amendment of Section 45. Once that be the case, the transfer of assets of the partnership to the retiring partners would amount to the transfer of capital assets in the nature of capital gains and business profits which is chargeable to tax under Section 45(4...