https://www.taxtmi.com/caselaws?id=213566 The Karnataka HC held that reconstitution of a firm involving admission of new partners and reduction of existing partners' shares does not constitute transfer under section 2(47). The court distinguished that firms are not taxed entities; individual partners are taxed. Since erstwhile partners continued as partners with reduced shares rather than retiring completely, no transfer occurred. The decision favored the assessee, distinguishing the Commissioner of Income-tax v. Gurunath Talkies precedent. en-us Mon, 12 Mar 2012 00:00:00 +0530 Thu, 19 Jun 2025 16:37:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=213566 The Karnataka HC held that reconstitution of a firm involving admission of new partners and reduction of existing partners' shares does not constitute transfer under section 2(47). The court distinguished that firms are not taxed entities; individual partners are taxed. Since erstwhile partners continued as partners with reduced shares rather than retiring completely, no transfer occurred. The decision favored the assessee, distinguishing the Commissioner of Income-tax v. Gurunath Talkies precedent. Case-Laws Income Tax Mon, 12 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=213566