https://www.taxtmi.com/caselaws?id=18019 The court held that the compensation received by a partner upon retirement from a firm was not taxable as capital gain under section 45 of the Income-tax Act, 1961. The court emphasized that the distribution of assets on retirement does not amount to a transfer of capital asset, and therefore, no capital gain arises for taxable purposes. Consequently, the court ruled in favor of the assessee, stating that the compensation amount received on retirement was not subject to capital gains tax, affirming that the amount received by the partner was not taxable as capital gain. en-us Wed, 27 Nov 1996 00:00:00 +0530 Sat, 26 Sep 2009 12:29:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18019 The court held that the compensation received by a partner upon retirement from a firm was not taxable as capital gain under section 45 of the Income-tax Act, 1961. The court emphasized that the distribution of assets on retirement does not amount to a transfer of capital asset, and therefore, no capital gain arises for taxable purposes. Consequently, the court ruled in favor of the assessee, stating that the compensation amount received on retirement was not subject to capital gains tax, affirming that the amount received by the partner was not taxable as capital gain. Case-Laws Income Tax Wed, 27 Nov 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18019