https://www.taxtmi.com/caselaws?id=9571 A retiring partner who receives only the value of her share in partnership assets, after liabilities, is not treated as making a gift merely because no separate amount is paid for goodwill or import entitlement. The partnership continues on retirement, and the assets and goodwill remain assets of the firm until dissolution. In the absence of material showing a transfer of property from the retiring partner to the continuing partners, any shortfall in receipt does not amount to a transfer within the Gift-tax Act. The alleged forfeiture of goodwill and import entitlement was therefore not a taxable gift, and the Revenue's appeal failed. en-us Thu, 10 Apr 2003 00:00:00 +0530 Sat, 27 Jun 2009 16:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9571 A retiring partner who receives only the value of her share in partnership assets, after liabilities, is not treated as making a gift merely because no separate amount is paid for goodwill or import entitlement. The partnership continues on retirement, and the assets and goodwill remain assets of the firm until dissolution. In the absence of material showing a transfer of property from the retiring partner to the continuing partners, any shortfall in receipt does not amount to a transfer within the Gift-tax Act. The alleged forfeiture of goodwill and import entitlement was therefore not a taxable gift, and the Revenue's appeal failed. Case-Laws Income Tax Thu, 10 Apr 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9571