2003 (4) TMI 5

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....Gift-tax Act, 1958 (in short "the Act") is directed against the order dated November 28, 2001, passed by the Income-tax Appellate Tribunal, Delhi Bench-B, New Delhi (for short "the Tribunal") in G.T.A. No. 32/Del/1994, pertaining to the assessment year 1989-90. Briefly stated, the background facts giving rise to the appeal are as follows: The assessee was a partner in a firm, namely, M/s. Sa....

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....essee to Mohan Gulati. He also treated 50 per cent, of the sale price of the import entitlement as the assessee's share in it and brought the said amount also to gift tax in her hands. Aggrieved, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax, while allowing the appeal, observed that the partnership deed/retirement deed did not provi....

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.... We have heard Ms. Prem Lata Bansal, learned senior standing counsel for the Revenue, and Mr. Krishan Mahajan, learned counsel for the respondent-assessee. It is strenuously urged by Ms. Bansal that by voluntarily forgoing her share in the goodwill of the firm and the import entitlement at the time of her retirement, there was a gift by the assessee in favour of Mohan Gulati, which was exigib....

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....hip, the partnership continues. The assets and the goodwill of the firm continue to remain the assets and the goodwill of the firm. All that the retiring partner gets is the value of his share in the partnership assets less its liabilities. It cannot, in such circumstances, be held, assuming that the retiring partner received less than what was his due, that the difference was something that he ha....