https://www.taxtmi.com/caselaws?id=17764 A partner's retirement from a firm is not a taxable gift under the Gift-tax Act, 1958 where the transaction is part of a family arrangement or broader realignment of partnership interests and is supported by consideration. A gift requires a transfer of existing property without consideration; consideration under the Act is not limited to cash and includes money or money's worth. On the proved facts, the retiring partner's relinquishment of rights was a readjustment of partnership assets, not a gratuitous transfer. Gift-tax was therefore not exigible, and the issue was answered against the Revenue and in favour of the assessee. en-us Thu, 13 Jun 1996 00:00:00 +0530 Thu, 24 Sep 2009 16:22:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17764 A partner's retirement from a firm is not a taxable gift under the Gift-tax Act, 1958 where the transaction is part of a family arrangement or broader realignment of partnership interests and is supported by consideration. A gift requires a transfer of existing property without consideration; consideration under the Act is not limited to cash and includes money or money's worth. On the proved facts, the retiring partner's relinquishment of rights was a readjustment of partnership assets, not a gratuitous transfer. Gift-tax was therefore not exigible, and the issue was answered against the Revenue and in favour of the assessee. Case-Laws Income Tax Thu, 13 Jun 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17764