https://www.taxtmi.com/caselaws?id=66273 Receipt by a partner on dissolution of a firm is not a taxable gift merely because it exceeds consideration stated in related documents. Partnership assets are adjusted among partners on dissolution, and no partner has a vested right in a specific asset before dissolution. Gift-tax requires a legally cognisable transfer, disposition, or relinquishment of an already vested property right; a mutual adjustment of partnership rights does not satisfy that requirement. A release deed ancillary to the dissolution arrangement does not alter this character. Where valuation becomes relevant, land and building values require comparison with similar properties and allowance for restricted access, while goodwill requires reliable 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 Receipt by a partner on dissolution of a firm is not a taxable gift merely because it exceeds consideration stated in related documents. Partnership assets are adjusted among partners on dissolution, and no partner has a vested right in a specific asset before dissolution. Gift-tax requires a legally cognisable transfer, disposition, or relinquishment of an already vested property right; a mutual adjustment of partnership rights does not satisfy that requirement. A release deed ancillary to the dissolution arrangement does not alter this character. Where valuation becomes relevant, land and building values require comparison with similar properties and allowance for restricted access, while goodwill requires reliable 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