[2019] 104 taxmann.com 58 (Bombay)

IT: In view of section 45(4), amount received by a partner on her retirement from a partnership firm is not liable to capital gain tax in hands of said partner

Section 45 of the Income-tax Act, 1961 – Capital gains – Chargeable as (Firm/Partner, in case of) – Assessee received certain amount at time of her retirement from partnership firm – Assessing Officer brought said amount to tax – Tribunal opined that in view of section 45(4) amount received by a partner on her retirement from a partnership firm was not liable to capital gain tax in hands of said partner – However, it was partnership firm which was liable to pay tax – Whether, on facts, no substantial question of law arose from Tribunal’s order – Held, yes

Smt. Hemlata S. Shetty