https://www.taxtmi.com/caselaws?id=66273 A partner's receipt on dissolution of a firm is not a taxable gift under the Gift-tax Act unless there is a legally cognisable transfer or disposition of property. The article explains that, because a partner has no vested right in any specific partnership asset before dissolution and the assets are adjusted by mutual working out of rights, the distribution on dissolution does not amount to a transfer in the ordinary legal sense. It also notes that, if gift-tax were otherwise relevant, valuation of land and buildings must reflect comparable properties and site disadvantages, while goodwill valuation must rest on proper profit data and accepted valuation principles. en-us Tue, 28 Jul 1981 00:00:00 +0530 Wed, 23 Feb 2011 12:45:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66273 A partner's receipt on dissolution of a firm is not a taxable gift under the Gift-tax Act unless there is a legally cognisable transfer or disposition of property. The article explains that, because a partner has no vested right in any specific partnership asset before dissolution and the assets are adjusted by mutual working out of rights, the distribution on dissolution does not amount to a transfer in the ordinary legal sense. It also notes that, if gift-tax were otherwise relevant, valuation of land and buildings must reflect comparable properties and site disadvantages, while goodwill valuation must rest on proper profit data and accepted valuation principles. Case-Laws Income Tax Tue, 28 Jul 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66273