https://www.taxtmi.com/caselaws?id=26627 On retirement from a partnership, a partner is not automatically treated as making a taxable gift of goodwill to the incoming or continuing partners. The Gift-tax Act definitions of "gift", "transfer of property", and the deeming rule for release, surrender or abandonment of an interest were considered, but tax liability depended on proof that the firm had positive goodwill capable of transfer and that the retiring partner in fact relinquished that interest. On the material before it, there was no adequate proof of existing goodwill, no valuation showing assets including goodwill exceeded liabilities, and no document establishing a relinquishment in favour of the other partners. No deemed gift was therefore made out on those facts. en-us Mon, 23 Sep 1985 00:00:00 +0530 Sat, 06 Feb 2010 13:59:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26627 On retirement from a partnership, a partner is not automatically treated as making a taxable gift of goodwill to the incoming or continuing partners. The Gift-tax Act definitions of "gift", "transfer of property", and the deeming rule for release, surrender or abandonment of an interest were considered, but tax liability depended on proof that the firm had positive goodwill capable of transfer and that the retiring partner in fact relinquished that interest. On the material before it, there was no adequate proof of existing goodwill, no valuation showing assets including goodwill exceeded liabilities, and no document establishing a relinquishment in favour of the other partners. No deemed gift was therefore made out on those facts. Case-Laws Income Tax Mon, 23 Sep 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26627