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Taxability on Retirement of partner

By Bharat Agarwal, on 27-08-2019
Posted in Direct Tax

Recently the Bangalore ITAT has held that the amount received by a retiring partner in excess of the capital balance is taxable in hands of such partner. The Bangalore itat held that the mode and manner in which the retirement deed is made would determine whether the taxability would arise or not. While deciding the case the itat has discussed all past precedence including the much cited case of Prashant JOSHI rendered by mumbai high court.