TMI Blog2003 (6) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A)-XXXI, Mumbai, pertaining to the assessment year 1994-95. 2. The only grievance of the Revenue is that the CIT(A) erred in holding that the amount credited in the capital account of retired partner upon revaluation of assets of the firm is not taxable as capital gain. 3. The assessee is an individual. During the previous year relevant to the assessment year 1994-95, he retired from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evaluation of assets of the partnership firm as on 13-9-1993 is for assessing or relinquishing his interest on share in favour of the continuing partners and this transaction tantamount to transfer within the meaning of section 2( 47 ) of the Act and the gains arising therefrom is taxable as capital gains. Accordingly, he brought to tax, the amount of Rs. 12,50,000 as short-term capital gains. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction Ltd. [1972] 83 ITR 211 , the Apex Court held that mere revaluation of assets do not give rise to any taxable profits or gains. It was also pointed out that before the Assessing Officer reliance was also placed on the decisions of Allahabad High Court reported at Addl. CIT v. Smt. Mohinderpal Bhasin [1979] 117 ITR 26 , CIT v. Madan Lal Bhargava [1980] 122 ITR 545, Andhra Pradesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tel v. CIT [1999] 236 ITR 515 wherein their Lordships held that any sum received by the assessee as his share of value of goodwill is not assessable as capital gains, following the decision in CIT v. B.C. Srinivas Setty [1981] 128 ITR 294 (SC) and that even where a partner retires and some amount is paid to him towards his share in the assets, it should be treated as falling under clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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