https://www.taxtmi.com/caselaws?id=11216 The High Court of Gujarat ruled in favor of the assessee in a gift tax assessment case for the year 1977-78. The court held that the transaction, involving the assignment of a share in a partnership firm to a trust, did not constitute a taxable gift as the new partner introduced by the assessee was brought in for commercial reasons and had agreed to share profits and losses. The court emphasized that relinquishing a share of interest in a firm for commercial purposes does not attract gift tax liability. The judgment highlights the importance of considering the commercial nature of transactions in determining gift tax liability. en-us Wed, 21 Jan 2004 00:00:00 +0530 Sun, 02 Aug 2009 15:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11216 The High Court of Gujarat ruled in favor of the assessee in a gift tax assessment case for the year 1977-78. The court held that the transaction, involving the assignment of a share in a partnership firm to a trust, did not constitute a taxable gift as the new partner introduced by the assessee was brought in for commercial reasons and had agreed to share profits and losses. The court emphasized that relinquishing a share of interest in a firm for commercial purposes does not attract gift tax liability. The judgment highlights the importance of considering the commercial nature of transactions in determining gift tax liability. Case-Laws Income Tax Wed, 21 Jan 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11216