Dismissing the appeal of the revenue the Court held that the amount received by retiring partner on account of good will is held to be not taxable. Followed CIT v. Riyaz A. Sheik ( 2014) 221 Taxman 118 ( Bom) (HC). (AY. 2009-10)
PCIT v. R.F. Nangrani (HUF) (2018) 167 DTR 28 / 304 CTR 12 (Bom.)(HC)
S. 45 : Capital gains–Long term capital gains-Firm-Retirement- Amount received by retiring partner as good will is held to be not taxable as capital gains.