TMI Blog2011 (1) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... he receipt of Rs. 21,65,625 received from the firm on retirement is to be assessed as income under the Income-tax Act. The reasons to believe that income chargeable to tax has escaped assessment to the extent of amount received at Rs.21,65,625 from the firm on the assessee's reason, coming within the meaning of section 147 of the Income-tax Act, by reason of the failure on the part of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent for the assessment year 2004-05 is sought to be reopened by recording the following reasons : "On a perusal of the records, it is seen that the assessee was a partner in M/s. Little and Co. a solicitor firm, and retired on March 23, 2004. During the year relevant to the assessment year 2004-05 the assessee was paid Rs. 21,65,625 on his retirement by the firm. The said amount has been reflect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (v) restricting retiring partner soliciting the clients of the firms for 3 years from the date of retirement attracting the provisions of section 28(va). From the above clauses of the partnership it is clear that the payment to the retired partner is made for relinquishing/discharge of all the above rights and interest which includes non-competing with the firms professional activities for thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue of notice under section 148 of the Income-tax Act 1961." 4. Counsel for the Revenue states that in the case Balkrishna Hiralal Wani v. ITO [2010] 321 ITR 519 (Bom), assessment sought to be reopened on similar grounds is held to be bad in law. 5. In these circumstances for the reasons recorded in the aforesaid case, the impugned notice dated March 25, 2010 issued under section 148 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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