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2019 (6) TMI 845 - AT - Income TaxCapital gain u/s 45 - sum received on retirement from the partnership firm - transfer u/s 2(47) or not? - eligibility of exemption u/s 10 (2A) - HELD THAT:- Various decisions relied on the assessee CHALASANI VENKATESWARA RAO. VIJAYAWADA VERSUS INCOME TAX OFFICER. WARD-IV. VIJAYAWADA [2012 (9) TMI 12 - ANDHRA PRADESH HIGH COURT] , PRASHANT S. JOSHI AND DATTARAM SHRIDHAR BHOSALE VERSUS INCOME-TAX OFFICER [2010 (2) TMI 271 - BOMBAY HIGH COURT] support his case to the proposition that amount paid to partner on retirement does not involve an element of transfer within the meaning of section 2 (47). Thus we hold that the assessee is not liable to any capital gain tax on account of the sum received by it as a partner on retirement from the partnership firm. The order of the CIT(A) on this issue is accordingly set aside and the Assessing Officer is directed to delete the addition - Decided in favour of assessee. Disallowance of loss incurred on purchase and sale of shares - CIT(A)'s power to enhance assessment by bringing a new sources of income - assessments were framed u/s 144 and since the discrepancies were found in the income computation during the appeal hearing order passed by the Ld. CIT u/s. 264 - HELD THAT:- Since the assessments were framed u/s 144 and since the discrepancies were found in the income computation during the appeal hearing, therefore, the CIT(A) in our opinion, has absolute power to issue enhancement notice to the assessee in the instant case. Therefore, the various decisions relied by assessee that CIT(A) has no power to enhance assessment by bringing a new sources of income is not tenable under the facts and circumstances of the case. Thus enhancement notice issued by CIT(A) in the instant case is justified. However, we find from the order of the CIT(A) that while enhancing the income he has given a finding that no corroborative evidences were filed by the assessee to substantiate that the loss is genuine. Considering all we deem it proper to restore this issue to the file of the AO with a direction to give an opportunity to the assessee to substantiate with evidence to his satisfaction regarding the genuineness of the loss on account of purchase and sale of shares of group companies. order passed by the Ld. CIT u/s. 264 - Assessee's ground allowed for statistical purpose.
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