2004 (1) TMI 57

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.... at the instance of the Revenue, the following question of law is referred for our opinion in respect of the assessment year 1977-78 : "Whether the Appellate Tribunal is right in law and the facts in holding that there was no taxable gift and thereby deleting the taxable gift of Rs. 61,954 ?" We have heard Mr. M.R. Bhatt, learned standing counsel for the Revenue. Though served, none appears ....

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....t. of share of the assessee in the partnership firm was for consideration and, therefore, the transaction did not attract gift-tax; the firm had no goodwill; the goodwill of the firm was not in fact transferred and that the goodwill of the firm could not be valued separately. The assessee also produced a copy of the deed of assignment by which he had assigned 50 per cent. of his share in the partn....

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.... consideration. It is necessary to note that the Gift-tax Officer held that gift-tax was leviable on the value of the gift on the basis of goodwill at Rs. 92,250. This court has held in CGT v. Punjabhai Kalabhai [2000] 243 ITR 223 that there is no doubt that goodwill is an asset of a firm and like any other asset of the firm is capable of being transferred, but at the same time, retirement of a....