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TMI Blog2002 (12) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... is appeal is preferred against the order of the Income-tax Appellate Tribunal passed in I.T.A. No. 1673 (Mad) of 1989 dated March 26, 2002. The assessee is a partner in a firm by name Express Traders and it transferred its interest in the firm to another company for a consideration of Rs. 30,000. The assessee during the course of assessment proceedings for the assessment year 1982-83 claimed shor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd no capital loss of any sort arose to the assessee. The Income-tax Appellate Tribunal also held that on the date of retirement, the assessee has transferred its interest in the firm as a partner and a sum of Rs. 30,000 was received as consideration, which was equal to the capital contributed by the assessee. The Tribunal held that the assessee was not entitled to claim deduction of the loss on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm was determined at Rs. 30,000. In other words, the sum of Rs. 30,000 was paid to the assessee taking into consideration all the liabilities of the firm. The result of getting the sum of Rs. 30,000 is that the assessee would be no longer obliged to bear any loss. The accounts made up at the time of retirement showed that the assessee was found to be entitled to a sum of Rs. 30,000 after adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as a capital loss. We are unable to accept the said submission as the Delhi High Court in Bishan Lal Kanodia's case [2002] 257 ITR 449, was dealing with a case of a receipt of the amount over and in excess of his share. Therefore, there was no difficulty in holding that the excess amount was assessable as capital gains. Here, we are concerned with a converse case where the assessee's share was d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er arose as there was no transfer of any capital and hence the assessee is ineligible to claim the same as capital loss. We find that the view of the Tribunal that the assessee has not suffered any loss when it received the sum of Rs. 30,000 at the time of retirement is perfectly in order and we do not find any question of law, much less a substantial question of law, warranting interference by us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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