https://www.taxtmi.com/caselaws?id=13768 A retiring partner's non-claim of any share in the investment allowance reserve was not treated as a deemed gift under section 4(1)(c) of the Gift-tax Act. The reasoning was that the Revenue had not shown the reserve to be an asset or property capable of transfer, nor established the ingredients needed for a deemed gift. Applying the settled principle that a partner on retirement receives only the value of his share in the partnership assets, the Court extended the same approach to the investment allowance reserve and held that abandonment of that share did not attract gift-tax. en-us Tue, 04 Sep 2007 00:00:00 +0530 Sun, 28 Dec 2014 13:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13768 A retiring partner's non-claim of any share in the investment allowance reserve was not treated as a deemed gift under section 4(1)(c) of the Gift-tax Act. The reasoning was that the Revenue had not shown the reserve to be an asset or property capable of transfer, nor established the ingredients needed for a deemed gift. Applying the settled principle that a partner on retirement receives only the value of his share in the partnership assets, the Court extended the same approach to the investment allowance reserve and held that abandonment of that share did not attract gift-tax. Case-Laws Income Tax Tue, 04 Sep 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13768