https://www.taxtmi.com/caselaws?id=386503 The court held that the reconstitution of a partnership firm, involving the transfer of assets to a retiring partner, does not constitute a transfer under Section 45(4) of the Income Tax Act, 1961. The court emphasized that the consideration received by the retiring partner is their share in the partnership, not a consideration for the transfer of interest. The absence of an amendment to Section 2(47) does not affect this interpretation. The appeal was allowed in favor of the assessee, ruling that the transfer to a retiring partner falls outside the scope of Section 45(4) and does not attract capital gains tax liability. en-us Mon, 16 Sep 2019 00:00:00 +0530 Mon, 30 Sep 2019 09:51:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=386503 The court held that the reconstitution of a partnership firm, involving the transfer of assets to a retiring partner, does not constitute a transfer under Section 45(4) of the Income Tax Act, 1961. The court emphasized that the consideration received by the retiring partner is their share in the partnership, not a consideration for the transfer of interest. The absence of an amendment to Section 2(47) does not affect this interpretation. The appeal was allowed in favor of the assessee, ruling that the transfer to a retiring partner falls outside the scope of Section 45(4) and does not attract capital gains tax liability. Case-Laws Income Tax Mon, 16 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=386503