TMI Blog2004 (1) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5, 1976, to Khurshid Trust. In the gift-tax return, the assessee disclosed the above gift and claimed exemption of Rs. 5,000 and, therefore, filed nil return. However, the assessee also filed a note along with the return disclosing that he had made a gift of half share on 50 per cent. profit sharing in M/s. M. Ravji and Co. However, the gift of the share in the partnership referred to above was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that the transaction in question amounted to a gift and valued the tax at Rs. 92,250. In appeal, the Deputy Commissioner of Wealth-tax (Appeals) held that the transaction was a gift, but the gift was valued at Rs. 61,550. The assessee, therefore, went in appeal before the Tribunal which held that the transaction in question did not amount to gift because in the present case the assessee had in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty as such. It is a matter of settling accounts while parting company what consideration prevailed for determining a sum payable to the outgoing partner is a matter of settlement between them and a question of fact. In the instant case, the 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. Ravji and Co. in favour of Khu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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