Amount received on retirement by a partner of firm was not subject to income tax

Shri James P. D’Silva Vs DCIT (ITAT Mumbai) Conclusion: Amount paid to a partner upon retirement after taking accounts and upon deduction of liabilities did not involve an element of transfer within meaning of section 2(47) and not chargeable to income tax. Held: Assessee was in the business of real estate and film production. Assessee conducting the business as a proprietary concern and various other concerns including the firm M/s. BC which was constituted with four partners. As the disputes arouse among the partners assessee was forced to retire from the firm accordingly the deed for ...