Situation is as described below:
•1) A,B, & C are partners in a partnership firm.
• 2) D is to admitted in the firm.
• 3) The existing partners agree to revalue the assets of
the firm.The FA of the firm were revalued and the revaluation was credited in the accounts of the original 3 partners.
4) Now, A retires from the firm.
Whether on facts of the case, the capital withdrawn by A will be taxable in the hands of Mr. A as it includes the enhanced value due to revaluation of assets?
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