https://www.taxtmi.com/caselaws?id=11449 On a partner's retirement from a partnership firm and induction of another partner, no gift arose in relation to the retiring partner's share in the firm's goodwill. The partnership continued, and the firm's assets and goodwill remained those of the firm; the retiring partner merely received the value of his share in partnership assets after liabilities, which was a realisation of a pre-existing right rather than a transfer to the continuing or incoming partner. The attempted distinction based on the admission of an incoming partner did not alter the principle. The court held that relinquishment of the goodwill share did not attract gift-tax, and the question was answered in favour of the assessee. en-us Tue, 24 Sep 2002 00:00:00 +0530 Mon, 10 Aug 2009 09:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11449 On a partner's retirement from a partnership firm and induction of another partner, no gift arose in relation to the retiring partner's share in the firm's goodwill. The partnership continued, and the firm's assets and goodwill remained those of the firm; the retiring partner merely received the value of his share in partnership assets after liabilities, which was a realisation of a pre-existing right rather than a transfer to the continuing or incoming partner. The attempted distinction based on the admission of an incoming partner did not alter the principle. The court held that relinquishment of the goodwill share did not attract gift-tax, and the question was answered in favour of the assessee. Case-Laws Income Tax Tue, 24 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11449