2011 (1) TMI 1194

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..... s an element of transfer, the interest by the retiring partners to the continuing partner is not excisable to gift tax, appeals are rejected [T.M. Louiz (2000 - TMI - 40240 - SUPREME Court - Income Tax)] - G.T.A. Nos. 1 & 2 of 2007 - - - Dated:- 11-1-2011 - N. Kumar and Ravi Malimath, JJ. Aravind and M.V. Seshachala for the Appellant. JUDGMENT N. Kumar, J . These two appeals are .....

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..... d, these appeals. 2. In the appeals filed by the revenue under the Income-tax Act, in respect of the very retiring partners this court in ITA No. 308/2007 and other 4 connected cases has held, when the partners retiring the consideration paid to them presenting leasehold will not fall within the definition of 'capital gains' and therefore, no tax is payable. The said judgment of this court has .....

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..... he Gift Tax Act takes colour from the context of the definition and its neighboring words and means a settlement upon the trust and not a settlement of accounts. Therefore, it was held the adjustment of rights between the retiring partner and the continuing partner in the assets of the partnership where there was an element of transfer, the interest by the retiring partners to the continuing partn .....

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