2001 (7) TMI 41

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....AM J.-The respondent-assessee was a partnership firm consisting of four partners, out of which one partner was the private firm. The first three partners had their respective shares and they have transferred the shares to the fourth partner, that being the partnership firm. The firm was dissolved on March 30, 1982, and after dissolution of the firm, the assets and liabilities were mutually adjuste....

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.... at the instance of the Revenue, and the question referred to us is, "whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the provisions of section 4(1)(a) of the Gift-tax Act are not attracted to the instant case?" It has been clearly made out from the facts of the case that the transfer was only among the partners in favour of the private ....

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.... under the Indian Partnership Act, 1932, is not a distinct legal entity apart from the partners constituting it and equally in law the firm as such has no separate rights of its own in the partnership assets and when one talks of the firm's property or the firm's assets all that is meant is property or assets in which all partners have a joint or common interest. It cannot, therefore, be said that....