TMI Blog2002 (7) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... rought on record by the assessee are that the partner whose share was reduced from 25 per cent. to four per cent. was 80 years of age and was totally blind and, therefore, was physically unfit for continuing as a partner of the firm and, therefore, it was necessary to transfer his right to share partnership profits to the other partners - Accordingly, our answer to the question referred to us is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hare was reduced. The Gift-tax Officer valued this 21 per cent. share by taking into account the average five years' profit and debiting three years' purchase thereon ultimately arriving at a figure amounting to Rs. 90,247. The assessee had already declared a gift amounting to Rs. 25,000 and, therefore, the Gift-tax Officer totalled up both these figures and after giving the basic exemption, arriv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. D. C. Shah [2001] 249 ITR 518, we are of the view that in the facts and circumstances of the case, the finding given by the Tribunal in favour of the assessee that there was no gift in respect of the partnership share for the year under consideration cannot be faulted with. In D. C. Shah's case [2001] 249 ITR 518, the apex court has held in no unmistakable terms that when the share of one part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm and, therefore, it was necessary to transfer his right to share partnership profits to the other partners. In view of the aforesaid facts, the aforesaid decision of the apex court in the case of D. C. Shah [2001] 249 ITR 518 is squarely applicable. The decisions of the apex court in Chhotalal Mohanlal [1987] 166 ITR 124 and T. M. Louiz's case [2000] 245 ITR 831 have already been considered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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