TMI Blog2020 (9) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... t of partner in the partnership firm which comprises of several components, goodwill being one of the components. Apart from the above, we are also of the view that the issue that is sought to be agitated by the revenue in this miscellaneous petition is a highly debatable issue. The jurisdiction u/s. 254(2) of the Act confined only to rectifying mistakes that are apparent on the face of record. In the garb of an application u/s 254(2) of the Act, the assessee cannot seek a review of the order of Tribunal. There is no mistake apparent on the face of the record. We are, therefore, of the view that there is no merit in this petition filed by the revenue and accordingly dismiss the same. - MP No.123/Bang/2019 [in ITA No.1700/Bang/2016] - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bilities. The capital account of the Assessee as on 1.4.2006 showed an opening balance of ₹ 1,64,14,044. Profit for the year of ₹ 46,20,591 was credited to his account. Similarly on revaluation of the land and building on 15.1.2007, a sum of ₹ 53,26,462 and ₹ 9,24,650 respectively was credited to her account. Another sum of ₹ 18,12,528 was also credited as interest on capital in her capital account. After reducing the Partner s drawing and other payments made the balance to the credit of Assessee s capital account was ₹ 2,77,88,200/-. The difference between the sum of ₹ 3,39,50,000 and the sum of ₹ 2,77,88,200 viz., a sum of ₹ 61,61,800 was taxed as capital gain by the AO. The Assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2007 an MOU was signed by the three partners and it was agreed that the Assessee would retire from the firm w.e.f. 1.4.2007 and a sum of ₹ 339.50 lakhs would be paid to the Assessee. On 9.6.2007 deed of retirement was signed. The Assessee gave up all her rights as partner of the firm and its assets nor was the Assessee liable to pay any of its liabilities. The capital account of the Assessee as on 1.4.2006 showed an opening balance of ₹ 1,64,14,044. Profit for the year of ₹ 46,20,591 was credited to his account. Similarly on revaluation of the land and building on 15.1.2007, a sum of ₹ 53,26,462 and ₹ 9,24,650 respectively was credited to her account. Another sum of ₹ 18,12,528 was also credited as inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the revenue authorities in taxing the excess paid over and above the sum standing to the credit of the capital account of the Assessee as capital gain has modified the computation of the capital gain by treating value of goodwill also as part of the credit in the partners capital account. According to the revenue, the value of Goodwill should not be considered as cost of acquisition or sum standing to the credit of the partners capital account because as per section 55(2)(a) of the IT Act, the cost of the goodwill has to be taken as nil. If this provision is applied the capital gain would be the same as calculated by the AO. 5. The ld. DR reiterated the stand of revenue as contained in the miscellaneous petition. It was also s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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