https://www.taxtmi.com/caselaws?id=64452 Relinquishment of a retiring partner's entitled share in firm goodwill can constitute a gift under the Gift-tax Act because goodwill is property of the firm and abandonment of the contractual entitlement in favour of the continuing partners falls within the statutory concept of a deemed gift. The bona fide exception in section 4(1)(c) applies only where the surrender is shown to be made in good faith and without fraud, concealment, or unfair dealing; on the stated facts, that exception was not established. The taxable value of the transferred goodwill interest must then be fixed on a reasonable valuation of the partner's share, rather than on an earlier valuation that has been set aside. en-us Wed, 06 Dec 1989 00:00:00 +0530 Mon, 07 Feb 2011 18:53:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64452 Relinquishment of a retiring partner's entitled share in firm goodwill can constitute a gift under the Gift-tax Act because goodwill is property of the firm and abandonment of the contractual entitlement in favour of the continuing partners falls within the statutory concept of a deemed gift. The bona fide exception in section 4(1)(c) applies only where the surrender is shown to be made in good faith and without fraud, concealment, or unfair dealing; on the stated facts, that exception was not established. The taxable value of the transferred goodwill interest must then be fixed on a reasonable valuation of the partner's share, rather than on an earlier valuation that has been set aside. Case-Laws Income Tax Wed, 06 Dec 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64452