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2018 (4) TMI 1212 - HC - Income TaxAddition u/s 45(1) under the head long term capital gains - Whether right of partner in the partnership firm is a capital asset u/s 2(14) and retirement of partner lead to extinguishment of such right in the firm amounting to transfer u/s 2(47) giving rise to capital gains exigible to tax? - amount received as goodwill on retirement is taxable in the hands of the retiring partner as capital gain - Held that:- There is nothing on record to indicate that it was a Revenue's contention before the authorities that the amount received by the respondent was not goodwill. In fact, the submission that in the absence of goodwill being indicated in the balance sheet of the partnership firm, there could not be no goodwill available to the firm is an issue being urged for the first time before this Court. Therefore, in the absence of this issue being raised before the authorities under the Act, it will not be question arising from the case. There is nothing on record on facts to indicate that the amount received by the respondent is not goodwill. Therefore, the decision of this Court in Riyaz A. Sheikh (2013 (12) TMI 248 - BOMBAY HIGH COURT) will apply wherein held amounts received on retirement by a partner is not subject to capital gains tax - Decided against Revenue.
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