Allowing the appeal of the assessee the Court held that, when a partner retires and there is transfer of his interests in the partnership assets to him towards his share in the assets, the same cannot be brought to tax as capital gain by transfer of capital asset. (AY. 2004-05)
National Company v. ACIT (2019) 415 ITR 5 / 263 Taxman 511/ 310 CTR 217 (Mad.)(HC)
S. 45(4) : Capital gains–Retirement-Allotment to a partner of his share in assets of partnership after deduction of liabilities is not transfer – Not liable to capital gains tax. [S. 2(47)(vi)]