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2023 (10) TMI 661 - AT - Income TaxDeduction u/s. 54F - Relinquishment of right in a Partnership Firm - Whether it is not a capital asset, consequently no benefit of deduction can be granted to the assessee? - HELD THAT:- As rightly pointed out by Assessee as per Section 2(14) capital asset means property of any kind held by the assessee, whether or not connected with his business or profession, but does not include stock-in-trade, raw materials held for the purpose of business or profession. A.O. in the computation of income has accepted the receipt on relinquishment of his share from the Partnership Firm as capital gain, but only denied the benefit of Section 54F of the Act, which in our considered opinion legally not correct. As relying on M/S. MANSUKH DYEING AND PRINTING MILLS [2022 (11) TMI 1180 - SUPREME COURT] and AN NAIK ASSOCIATES AND ANOTHER, [2003 (7) TMI 46 - BOMBAY HIGH COURT] no hesitation in holding the receipt on relinquishment of assessee’s share from partnership firm is a capital gain wherein the claim of reinvestment on residential flats is an allowable claim deduction under section 54F of the Act. Therefore the disallowance made by the Lower Authorities are hereby set aside. Thus the grounds raised by the Assessee is hereby allowed.
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