Assessee along with other family members was holding shares in a company NPIL under family business group. Due to dispute in functioning of company NPIL and other group concerns and in order to restore peace and harmony in family, all agreed to family arrangement by filing petition before CLB.  Based on direction of CLB, assessee transferred shares in company NPIL to another company under a buy back agreement. Assessee claimed that no tax should be levied on long-term capital gain (LTCG) arising from transfer of shares out of family arrangement as per CLB order, although same was included in total taxable income calculated by assessee in his return. The  Assessing Officer held  that LTCG arose on transaction of selling of shares of NPCL by assessee was taxable. CIT(A) affirmed the order of the Assessimg Officer. On appeal the Tribunal held that  partition or family settlement is not transfer and since assessee had transferred shares under family arrangement only as per direction of CLB, no capital gain tax was liable to be paid on such transaction even if tax was paid by assessee under mistaken belief that such transaction was taxable.  (AY. 2007-08)