https://www.taxtmi.com/caselaws?id=212845 The High Court held that in cases of retiring partners in a partnership, if there is a mere adjustment of rights without a transfer of interest, gift tax cannot be levied. Consideration paid to retiring partners does not attract capital gains tax. The Court emphasized that adjustments of rights in partnership assets do not trigger gift tax implications. The revenue's appeals were rejected as no substantial question of law was found. The judgment distinguished between settlements upon trust and settlements of accounts, clarifying the tax implications in such scenarios. en-us Tue, 11 Jan 2011 00:00:00 +0530 Fri, 20 Apr 2012 13:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=212845 The High Court held that in cases of retiring partners in a partnership, if there is a mere adjustment of rights without a transfer of interest, gift tax cannot be levied. Consideration paid to retiring partners does not attract capital gains tax. The Court emphasized that adjustments of rights in partnership assets do not trigger gift tax implications. The revenue's appeals were rejected as no substantial question of law was found. The judgment distinguished between settlements upon trust and settlements of accounts, clarifying the tax implications in such scenarios. Case-Laws Income Tax Tue, 11 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=212845