2000 (9) TMI 68

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... year with which we are concerned is the assessment year 1973-74. The assessee retired with effect from April 1, 1972, from two firms in which he was a partner. The Gift-tax Officer assessed him to gift-tax on the basis that, upon such retirement, there was a gift because the assessee had surrendered his rights in the firms. The assessee appealed and the Appellate Assistant Commissioner upheld the assessee's contention that there was no voluntary act by him and that he had only relinquished his right and interest in the firms so that there was no gift. Before the Tribunal it was urged on behalf of the Revenue that the amount taken by the assessee from the firms for his shares therein was less than the market value thereof since the goodwill....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by such person." "Transfer of property" is defined as under : " 'transfer of property' means any disposition, conveyance, assignment, settlement, delivery, payment or other alienation of property and, without limiting the generality of the foregoing, includes--- (a) the creation of a trust in property ; (b) the grant or creation of any lease, mortgage, charge, easement, licence, power, partnership or interest in property ; (c) the exercise of a power of appointment (whether general, special or subject to any restrictions as to the persons in whose favour the appointment may be made) of property vested in any person, not the owner of the property, to determine its disposition in favour of any person other than the donee of the power ; ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and the firm was reconstituted. G continued as before. The share of C was reduced to four annas. R was inducted as a partner with four annas share. The two minor sons of C were admitted to the benefits of the partnership with a share of twelve and thirteen per cent., respectively. The question was whether there was a gift by C to his two minor sons of his share of three annas partnership. This court held that with the admission of the two minors to the benefits of the partnership, the right to the money value of the goodwill stood transferred and there had been a gift within the meaning of the Gift-tax Act. The definition of "gift" makes it clear that there has to be a transfer by one person to another of movable or immovable property ; su....