The assessee individual 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, in order to restore the peace and harmony in family, all family members agreed to family arrangement by filing petition before CLB. Based on direction of CLB, the assessee transferred shares of NPIL to another group company under a buy back agreement. The assessee claimed that Long-Term Capital Gain (LTCG) arose from sale of shares was not taxable. The Assessing Officer rejected the claim of assessee and held  that the transaction of selling of shares of the  Natar Parikli Co. Ltd. (NPCL)  by the assessee could not be termed as family arrangement and the same was exit of the large stakeholder/director from the company which was taxable as LTCG.CIT(A) affirmed the order of the AO. On appeal the Tribunal held that  there is no doubt that there is a family arrangement and based the condition specified in the order passed by CLB, the shares were transferred to the company on the buyback terms. Partition or family settlement is not transfer. When there is no transfer there is no capital gain and consequently no tax on capital gain is liable to be paid. In the given case, the assessee has transferred the shares based on the family settlement as per the direction of CLB . Accordingly the Tribunal directed the  Assessing Officer to allow the claim of the assessee even though the assessee has paid the tax by calculating the capital gain under mistaken belief that this transaction is taxable. Relied on  Ram Char-in Das v. Girja Nandini Devi [AIR 1966 SC 3231, Kale v. Deputy Director of Consolidation, MIR 1976 SC 8071, Mrs. P. Sheela v. Income-tax officer 120091 308 ITR (A, T,) 350( Bang )( Trib) , CIT v. R. Nagaraja Rao  ( 2013)  352 ITR 565 ( Karn)( HC)  ( AY. 2007 -08 )