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2019 (2) TMI 457 - HC - Income TaxRevision u/s 263 - amount received by the partner after retirement from the partnership firms - assessee declared total income at 'Nil' - CIT observed that not taxing the partner on the retirement compensation, is erroneous and prejudicial to the interest of the Revenue - Held that:- Assessing Officer had made necessary enquiries with regard to the amounts received by the Respondent on its retirement in the context of taxability on account of capital gains of the amounts received on retirement by the Respondent. Thus, the contention of the Revenue that, no enquiry was done by the Assessing Officer with regard to the compensation received, stands negatived by the office note annexed to the Assessment Order dated 26th December, 2011. In any event, the issue on merits in our view, is covered by the decision of this Court in Prashant S. Joshi [2010 (2) TMI 271 - BOMBAY HIGH COURT], even though the order was in the context of reopening notices. It was in the above context, the Court examined the scope of Section 45(4) of the Act to hold that in terms thereof, on dissolution of the firm or otherwise, the capital gains arising from transfer of a capital asset, would be chargeable to tax as income of the firm. Revision order u/s 263 is not valid - Decided against the revenue.
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