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II. Direct Tax Case laws:
1. ACIT vs Shri N. Prasad, ITA No. 1200/Hyd/2010, Date of Order: 27.01.2014, ITAT-Hyderabad
Whether the
surplus receipt by the retiring partner is taxable in his hands as per
provisions of section 2(47) of the Income Tax Act, 1961.
Held_No
In the present
case, the assessee had received a surplus of Rs. 25,00,000/- at the
time of retirement from the partnership firm. The Ld. AO had made the
additions on account of transfer of goodwill. The assessee was of the
contention that goodwill is an asset of the firm and it cannot be
transfer by the assessee, it continues to be held by the firm even after
his retirement, so cannot be chargeable to tax. The Ld. CIT(A) allowed
the appeal in view of the facts of the case and by placing reliance on
the decision of Hon’ble Supreme Court pronounced in the case of R.
Lingamallu Raghu Kumar in which it was held that the retirement of
partner does not tantamount to transfer within the meaning of section
2(47) of the Act. The Hon’ble ITAT upheld the decision of CIT(A) and
thus the appeal of revenue is dismissed.
2. Gujarat Alkalies and Chemicals Ltd. vs ACIT, Appeal No. 777/2013, Date of Order: 21.10.2013, High court of Gujarat
Whether the
Appellate Tribunal is right in directing the AO to take fresh decision
in accordance with the specific decision pronounced by special bench in
another case.
Held No,
Under Section
254 of Income Tax Act 1961, the Tribunal has remanded the matter to the
AO to take a fresh decision in light of decision pronounced by the
Special Bench in case of IndusInd Bank Ltd. Vs ACIT. The Ld. Counsel on
behalf of the appellant has taken a realistic and pragmatic view and
clarified that the AO should take a fresh decision in accordance with
law and the case law at time of deciding matter inclusive of aforesaid
decision and Tribunal could not restrict to a particular decision only.
The Hon’ble High Court by accepted the contention of assessee held that
the fresh decision of the Ld. AO must be in accordance with law & on
merit and not only on the basis of a specific decision.
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