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2004 (1) TMI 57 - HC - Income TaxGift tax - "Whether the Appellate Tribunal is right in law and the facts in holding that there was no taxable gift and thereby deleting the taxable gift of Rs. 61,954 ?" - assessee did not retire from the firm, but he merely assigned 50 per cent. of his share in the partnership firm of M/s. M in favour of K Trust. Hence, there was no question of transfer of goodwill of the firm. The donee, i.e., a new partner, was inducted to assist the firm in carrying out the business and the new partner has agreed to share the profits and losses of the firm. Hence, the Gift-tax Officer was not justified in treating the transaction as a gift on the basis of the value of the goodwill when the goodwill was not transferred – Question is answered in positive i.e., in favour of the assessee and against the Revenue
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