No capital gain tax on amount received by retiring partner

MDLR Builders (P) Ltd. Vs DCIT (ITAT Delhi)

Conclusion: When a retiring partner took only money towards the value of his share on retirement and when there was no distribution of capital asset/ assets going to the partners, there was no transfer of capital asset and consequently no profits or gains was chargeable u/s. 45 (4).

Held: AO taxed short term capital gain on account of transfer of shares in the partnership firm by assessee company to M/s. V Limite

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