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2019 (4) TMI 960 - AT - Income TaxTaxability of capital gain in firm - revaluation of asset being land held by the partnership firm - Transfer of capital asset on dissolution of firm or “otherwise” u/s 45(4) r.w.s. 2(14) - money equivalent as paid by the partnership firm to the retiring partner - difference of opinion by members of tribunal - reference to Third Member by the Hon'ble President u/s.255(4) - HELD THAT:- In agreement with the view of the Ld.CIT(A) that money equivalent to enhanced portion of the asset revalued and credited in capital account of the partner is not a capital asset and distribution of such money equivalent to the partners on retirement did not constitute transfer of capital asset on dissolution of the firm or “otherwise” within the meaning of section 45(4) r.w.s. 2(14), there was difference of opinion between my Learned Brother and myself and the point of difference was referred to Third Member by the Hon'ble President u/s.255(4) of the Act. Hon'ble Third Member [2019 (1) TMI 1551 - ITAT MUMBAI] answered both the questions in the negative and in favour of the assessee agreeing with the view of the Judicial Member. Since the Majority view of the Members is against the Revenue, the grounds raised by the Revenue in both the appeals are decided against the Revenue in conformity with the order passed by the Third Member.
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