Case Law Analysis
|Income Tax Appellate Tribunal
Actual transfer of capital asset required for taxability on partner retirement under Section 45(4) | ITAT Pune distinguishes Mansukh Dyeing : ITAT
ITAT Pune held that a retiring partner's receipt is not taxable under Section 45(4) unless there is an actual transfer of a capital asset, distinguishing Mansukh Dyeing on its facts. This affects partnerships and LLPs retiring partners, preventing tax on mere payment settlements.