[1] IT REFERENCE 30/1998 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR. O R D E R D.B. INCOME TAX REFERENCE NO. 30/1998 THE COMMISSIONER OF INCOME TAX, JAIPUR Vs. SHRI H.K. PODDAR Date: 09.07.2009 HON'BLE MR. JUSTICE ASHOK PARIHAR HON'BLE MR. JUSTICE K.S. CHAUDHARI Mr. Anuproop Singhi on behalf of Mr. J.K. Singhi, Advocate for the petitioner. Mr. T.C. Jain, Advocate for the respondent. **** The Income Tax Appellate Tribunal vide order dated 13.10.1997 made the following reference to this Court:- “(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of Rs. 5 lacs received by the assessee at the time of his retirement from partnership was not income chargeable to tax? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the amount of Rs. 5.00 lacs received by the assessee at the time of his retirement from the partnership, could not be taxed as casual income?” The dispute is in regard to the amount of Rs.5 lacs received by the assessee on his retirement as partner from the Firm. The question is whether the amount so received, can be treated as income to be taxed under the Act. The Tribunal relying on various judgments of the Supreme Court, held that on retirement from the firm the assessee had [2] IT REFERENCE 30/1998 relinquished all his right, title and interest in the firm receiving a lumpsum amount from the source and the same can not be treated as casual income. Be that as it may, the Supreme Court recently in the case of Commissioner of Income-TAx Vs. D.P. Sandu Bros. Chembur P. Ltd., 273 ITR 1 (SC), has held that surrender of the capital asset and the receipt thereof cannot be treated as a casual or non-recurring receipt under Section 10(3) of the Act, thus, could not be included in the income for the relevant year for tax assessment. In view of the judgment referred above by the Supreme Court, in our opinion, the Tribunal was right in holding that the amount received by the Assessee on his retirement cannot be taxed. The questions referred by the Tribunal are answered accordingly and the income tax reference also stands disposed of. A copy of this order be sent to the Tribunal. (K.S. CHAUDHARI),J. (ASHOK PARIHAR),J. /KKC/