2001 (4) TMI 20 - HC - Income Tax

Summary

The High Court of Madras ruled that there is no deemed gift when a partnership firm dissolves, based on the Supreme Court decision in Jagatram Ahuja v. CGT [2000] 246 ITR 609. The Tribunal was correct in holding that there was no gift when a partner took over the running business and made payments to other partners. The decision favored the assessee and went against the Revenue.