https://www.taxtmi.com/caselaws?id=335046 The Tribunal ruled in favor of the assessee, holding that no capital gains tax was applicable under section 45(4) in the hands of the firm. The Tribunal found that there was no transfer of a capital asset by the firm to the retiring partner, thus section 45(4) was not applicable. The Tribunal also acknowledged the risk of double taxation if the firm was taxed, which was deemed impermissible. The revenue's appeal and the assessee's cross-objection were dismissed, along with the additional ground raised by the revenue regarding treating the transaction as sales turnover for taxation as business income. en-us Fri, 30 Sep 2016 00:00:00 +0530 Fri, 25 Nov 2016 10:46:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=335046 The Tribunal ruled in favor of the assessee, holding that no capital gains tax was applicable under section 45(4) in the hands of the firm. The Tribunal found that there was no transfer of a capital asset by the firm to the retiring partner, thus section 45(4) was not applicable. The Tribunal also acknowledged the risk of double taxation if the firm was taxed, which was deemed impermissible. The revenue's appeal and the assessee's cross-objection were dismissed, along with the additional ground raised by the revenue regarding treating the transaction as sales turnover for taxation as business income. Case-Laws Income Tax Fri, 30 Sep 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335046