Partnership Dissolution Not Deemed Gift: High Court Decision Upheld

The High Court of Madras held that no deemed gift arises upon the dissolution of a partnership firm, following the Supreme Court precedent in Jagatram Ahuja v. CGT. The Tribunal's finding that no gift occurred when a partner assumed control of the business and compensated other partners was upheld, resulting in a ruling in favor of the assessee over the Revenue.

---

---

The High Court of Madras ruled that there is no deemed gift when a partnership firm dissolves, based on the Supreme Court decision in Jagatram Ahuja v. CGT [2000] 246 ITR 609. The Tribunal was correct in holding that there was no gift when a partner took over the running business and made payments to other partners. The decision favored the assessee and went against the Revenue.

---