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2014 (1) TMI 1681 - AT - Income TaxCapital gain - whether there is no transfer within the meaning of sec. 2(47) when a partner received his share in the partnership business? - retirement of partners - CIT (A) deleted the addition by holding that there is no ‘transfer’ - Held that:- A reading of clause 4 of the deed of retirement makes it clear that the amount of ₹ 1.25 cores was paid to the assessee towards his share capital and not for relinquishing or extinguishing his rights over any assets of the firm. The term ‘goodwill,’ in our view has been loosely used in the aforesaid clause. Furthermore, a plain reading of the clause 4 will not in any manner indicate that payment of ₹ 25 lakhs was towards transfer of goodwill as suggested by the Assessing Officer. Therefore, considering totality of facts and the circumstances of the case and applying the ratio laid down by the Hon’ble jurisdictional High Court in the case of Chalasani Venkatesara Rao (2012 (9) TMI 12 - Andhra Pradesh High Court), which is binding on us, we are of the view that the order passed by the CIT (A) needs to be upheld - Decided in favour of assessee.
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