Retirement benefits not subject to capital gains tax

The High Court of Gujarat held that the amount received by the assessee on retirement is not subject to capital gains tax or chargeable under the Income-tax Act, 1961. The ruling favored the assessee based on precedents and interpretation of relevant sections.

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The High Court of Gujarat ruled that the amount of Rs. 60,000 received by the assessee on retirement from M/s. Modi Dyes and Industries is not exigible to capital gains tax under section 45 or chargeable to tax under section 28(iv) of the Income-tax Act, 1961. The decision was based on previous court rulings and the question was answered in favor of the assessee.

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