( 1 ) THIS appeal by the Revenue is directed against the judgment of the andhra Pradesh High Court dated 21-7-1982 in Income Tax Case No. 28 of 1977 whereby the following question referred to the High Court was answered against the Revenue, and in favour of the assessee:"whether on the facts and in the circumstances of the case, the excess amount of Rs 46,500 received by the assessee on retirement from the two partnership firms is assessable to capital gains?"

( 2 ) THE High Court has held that there was no transfer of any assets as contemplated by the expression "transfer" as defined in Section 2 (47) of the income Tax Act. The High Court has placed reliance on the judgment of the gujarat High Court in CIT v. Mohanbhai Pamabhai wherein it has been held that when a partner retires from a partnership and the amount of his share in the net partnership assets after deduction of liabilities and prior charges is determined on taking accounts in the manner prescribed by the relevant provisions of the partnership law, there is no element of transfer of interest in the partnership assets by the retired partner to the continuing partners. The said judgment of the Gujarat High Court has been