2010 (2) TMI 84 - BOMBAY HIGH COURT

Sum received by assessee on retirement from firm of solicitors upon superannuation - held that income which can be taxed under section 28(iv) must not only be referable to a benefit or perquisite, but it must be arising from business. Secondly, section 28(iv) does not apply to benefits in cash or money - The contention of the petitioner was that (i) clause 35 of the deed of partnership had no application to a situation where a partner had retired mandatorily on attaining the age of seventy years. - Thus, there was, in our opinion, no tangible material before the Assessing Officer to form a conclusion that income has escaped assessment. Hence though no assessment order was passed under section 143(3), we are of the view that the jurisdictional condition precedent prior to the exercise of the power to reopening the assessment under section 147 of the Act has not been fulfilled. The petition will, therefore, have to be allowed