https://www.taxtmi.com/caselaws?id=11611 On retirement from a partnership firm, the partner was not liable to gift-tax because the firm continued to exist and its assets and goodwill remained partnership property. The retiring partner merely received the value of his share in the firm after liabilities, and no legally identifiable transfer of property to the continuing or incoming partners was shown. The tax authorities' attempt to treat the value of goodwill as a taxable gift therefore failed. The principle applied was that, absent a transfer of property from the retiring partner, retirement and reconstitution of the firm do not by themselves create gift-tax liability. en-us Tue, 25 Sep 2001 00:00:00 +0530 Tue, 02 Feb 2010 12:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11611 On retirement from a partnership firm, the partner was not liable to gift-tax because the firm continued to exist and its assets and goodwill remained partnership property. The retiring partner merely received the value of his share in the firm after liabilities, and no legally identifiable transfer of property to the continuing or incoming partners was shown. The tax authorities' attempt to treat the value of goodwill as a taxable gift therefore failed. The principle applied was that, absent a transfer of property from the retiring partner, retirement and reconstitution of the firm do not by themselves create gift-tax liability. Case-Laws Income Tax Tue, 25 Sep 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11611