https://www.taxtmi.com/caselaws?id=38631 A retiring partner who receives capital, accrued profits and settlement amounts on dissolution or retirement does not thereby transfer property in future profits under section 2(xxiv) of the Gift-tax Act, 1958. Once membership of the firm ends, the partner has no continuing right to future profits, so that alleged right cannot be treated as property capable of gift. The court rejected the argument that every retirement necessarily involves a surrender of future profit rights, and distinguished cases where a partner merely remained in the firm after reconstitution and his profit share was adjusted. Gift-tax was therefore not leviable, and the issue was answered in favour of the assessee. en-us Fri, 11 Mar 1977 00:00:00 +0530 Wed, 07 Apr 2010 17:28:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38631 A retiring partner who receives capital, accrued profits and settlement amounts on dissolution or retirement does not thereby transfer property in future profits under section 2(xxiv) of the Gift-tax Act, 1958. Once membership of the firm ends, the partner has no continuing right to future profits, so that alleged right cannot be treated as property capable of gift. The court rejected the argument that every retirement necessarily involves a surrender of future profit rights, and distinguished cases where a partner merely remained in the firm after reconstitution and his profit share was adjusted. Gift-tax was therefore not leviable, and the issue was answered in favour of the assessee. Case-Laws Income Tax Fri, 11 Mar 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38631