https://www.taxtmi.com/caselaws?id=62236 Retirement and reconstitution payments made to partners were treated as part of a retirement settlement, with goodwill and capital appreciation adjusted among the partners. No gift arose in respect of the retiring partners because there was no transfer, extinguishment or relinquishment of rights amounting to a deemed gift. As regards the continuing partners, inadequacy of consideration could not be established because their rights in the subsisting firm could not be valued with certainty without a full account of assets and liabilities on the relevant date. The authorities' valuation was also unsustainable because it relied on a later revaluation, used an ad hoc reduction, omitted necessary deductions and applied an incorrect goodwill method. Gift-tax could not therefore be sustained. en-us Mon, 23 May 1994 00:00:00 +0530 Tue, 18 Jan 2011 17:04:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62236 Retirement and reconstitution payments made to partners were treated as part of a retirement settlement, with goodwill and capital appreciation adjusted among the partners. No gift arose in respect of the retiring partners because there was no transfer, extinguishment or relinquishment of rights amounting to a deemed gift. As regards the continuing partners, inadequacy of consideration could not be established because their rights in the subsisting firm could not be valued with certainty without a full account of assets and liabilities on the relevant date. The authorities' valuation was also unsustainable because it relied on a later revaluation, used an ad hoc reduction, omitted necessary deductions and applied an incorrect goodwill method. Gift-tax could not therefore be sustained. Case-Laws Income Tax Mon, 23 May 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62236