https://www.taxtmi.com/caselaws?id=20716 The High Court held that the amount received by the assessee on the dissolution of the partnership firm was not taxable as a benefit or perquisite under section 28(iv) of the Income-tax Act, 1961. The court relied on precedents to establish that such distributions upon dissolution do not constitute a sale or transfer, and therefore cannot be taxed as capital gains. The court distinguished the case from instances where compensation for surrendering partnership rights was considered business income. Ultimately, the court ruled in favor of the assessee, concluding that the amount received did not arise from the business of the firm and thus was not taxable under section 28(iv). en-us Thu, 17 Sep 1992 00:00:00 +0530 Mon, 16 Nov 2009 17:22:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20716 The High Court held that the amount received by the assessee on the dissolution of the partnership firm was not taxable as a benefit or perquisite under section 28(iv) of the Income-tax Act, 1961. The court relied on precedents to establish that such distributions upon dissolution do not constitute a sale or transfer, and therefore cannot be taxed as capital gains. The court distinguished the case from instances where compensation for surrendering partnership rights was considered business income. Ultimately, the court ruled in favor of the assessee, concluding that the amount received did not arise from the business of the firm and thus was not taxable under section 28(iv). Case-Laws Income Tax Thu, 17 Sep 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20716