https://www.taxtmi.com/caselaws?id=40240 On a partner's retirement from a firm, the amount received on settlement of his share is not treated as a transfer of property constituting a gift under the Gift-tax Act. A retiring partner is entitled only to the value of his share in the partnership assets after liabilities, and any shortfall from market value, including where goodwill is not separately valued, does not amount to a transfer by the retiring partner to the continuing partners. The word "settlement" in the statutory definition refers to a settlement upon trust, not a settlement of accounts. Accordingly, no gift arose on the facts, and gift-tax was not chargeable. en-us Wed, 20 Sep 2000 00:00:00 +0530 Sat, 28 Jun 2014 14:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40240 On a partner's retirement from a firm, the amount received on settlement of his share is not treated as a transfer of property constituting a gift under the Gift-tax Act. A retiring partner is entitled only to the value of his share in the partnership assets after liabilities, and any shortfall from market value, including where goodwill is not separately valued, does not amount to a transfer by the retiring partner to the continuing partners. The word "settlement" in the statutory definition refers to a settlement upon trust, not a settlement of accounts. Accordingly, no gift arose on the facts, and gift-tax was not chargeable. Case-Laws Income Tax Wed, 20 Sep 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40240