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2016 (3) TMI 1128 - AT - Income TaxCapital gain computation - transfer of property as per the provisions of section 2(47) - transfer of leasehold rights by the firm to its retiring partners - Held that:- The provisions of section 45(4) of the Act are not applicable for the year under consideration, i.e. A.Y. 2010-11 as there is no retirement of any partner during this period. There is no transfer of leasehold rights in the said property by the assessee firm to the retiring partners; which continue to stay vested in the assessee firm even after the change in the constitution of the assessee firm. As per the provisions of section 45(4) of the Act the income is not to be taxable under the head ‘business income’ but rather the income should be exigible to tax under the head ‘Income from Capital Gains’ and the indexed cost of acquisition of the capital asset should be deducted from the full value of consideration computed under section 48 of the Act. - Decided against revenue
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