1989 (3) TMI 128

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tance of the Revenue, the Income-tax Appellate Tribunal has referred the following question of law for the decision of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that there was no gift by Shri, T. M. Francis to his wife and daughter-in-law on his retirement from the firm The respondent is an assessee to gift-tax. The matter rela....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....section 5(1)(xiv) of the Act was rejected. The goodwill of the firm was computed at three years' purchase of the average of five years' assessed income of the firm and the value of the gift was determined at Rs. 91,800. The Gift-tax Officer proceeded on the basis that the relinquishment was made by the respondent in favour of the other partners. In appeal, the Appellate Assistant Commissioner took....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d hereinabove, for the decision of this court. We heard counsel for the Revenue, Mr. P. K. R. Menon, as also counsel for the respondent/assessee. The facts involved in this case are not in dispute. The respondent was a partner in a firm along with three others. By resolution dated March 25, 1974, it was resolved that the assessee would retire from the partnership and in his place his wife and d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt had such a right. If the consent of the other partners is necessary to induct the wife and daughter-in-law of the respondent as partners in the firm, it is proof positive that the respondent/assessee had no. Tight to nominate or assign his right in the partnership to any other person. Only if the respondent had any right to assign his interest or nominate another in his place in the partnership....