1989 (2) TMI 6

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....ppellate Tribunal has referred the following two questions of law for the decision of this court : "1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding that 'the firm had no goodwill' and is not the order of the Tribunal vitiated also for non-consideration of relevant 'tests' and materials ? 2. Whether, on the facts and in the circu....

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.... is a transfer in the eye of law. Accordingly, the Gift-tax Officer made a gift-tax assessment and brought the value of the assessee's share to gift-tax, including the value of the assessee's share of goodwill, and he computed the taxable gift at Rs. 2,04,580. In appeal, the Appellate Assistant Commissioner cancelled the said assessment. The Appellate Tribunal concurred with the Appellate Assistan....

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....rat High Court in CIT v. Mohanbhai Pamabhai [1973] 91 ITR 393. The court held that no transfer is involved when a retiring partner takes his share in the partnership including goodwill. In that case, the question was whether there was any capital gains. The question was answered in the negative. The above decision of the Gujarat High Court was affirmed by the Supreme Court in Addl. CIT v. Mohanbha....