9911796707
TMI Blog1987 (4) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... and five annas share, respectively, in the firm. This position continued until on November 9, 1961, relevant to the assessment year 1963-64, with which this appeal is concerned, a change took place in the constitution of the firm. Under the new deed, Pravinchandra Vedilal retired; no change took place in respect of Gunvantilal Chhotalal; one Ramniklal Chhotalal became a partner with four annas share. The share of the assessee, Chhotalal Mohanlal, was reduced to four annas; for the remaining four annas, two minor sons of Chhotalal, being Kiritkumar and Deepak Kumar, were admitted to the benefits only of the firm-Kiritkumar having 12 per cent. and Deepak Kumar having 13 per cent. No alteration was, however, made regarding the share capital st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the benefits of partnership given to minors, Kiritkumar Chhotalal and Deepak Kumar Chhotalal, was a gift under the Gift-tax Act, 1958 ? " The High Court answered the question against the Revenue and upheld the view of the Tribunal. This appeal has, therefore, been carried by the Revenue. In spite of service of notice of appeal, the respondent has not appeared. Counsel appearing in support of the appeal has contended that the order of the Gift-tax Officer was right and the Appellate Assistant Commissioner, the Tribunal and the High Court had gone wrong in holding that the arrangement under the deed of November 9, 1961, did not give rise to taxable event under the Act, so far as the assessee was concerned. " Gift" is defined in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transferee is entitled as against the remaining partners to receive the share of the assets of the firm to which the transferring partner is entitled. It further appears that under proviso to section 53 of the Indian Partnership Act, in case of dissolution, a partner or his representative may buy the goodwill of the firm and under section 55(1) of the Act, in settling the accounts of a firm after dissolution, the goodwill shall, subject to contract between the parties, be included in the assets and it may be sold either separately or along with other properties of the firm ...... Upon transfer, the share or interest in the property of the firm of the transferring partner including the goodwill becomes the share or interest of the transfere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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