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Prashant S. Joshi vs The Income-Tax Officer Ward 19(2)(4 on 22 February, 2010

9. Thus, we find that the amount received by a partner on his retirement from the partnership firm has been held to be not taxable. Honourable Courts have held that there is no element of transfer and therefore, the amounts received by the retiring partner does not attract capital gains. The Honourable Bombay High Court in the case of Prashant S. Joshi (Supra) has categorically stated that the amounts received by the retiring partner are neither chargeable to tax under section 28(iv) nor under section 28(v). Therefore, the findings 16 Shri Rajul Bhargava, Indore & otr.
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