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TMI Blog1991 (3) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... . Whether, on the facts and in the circumstances of the case, the Tribunal has erred in law in holding that Shri Subhash's agreeing to join as a working partner and his promise to work in future in the firm of M/s. D. T. Choudhari did not amount to a consideration within the meaning of section 2(xii) of the Gift-tax Act, 1958 ? 3. If the answer to question No. 1 is in the affirmative, whether, on the facts and in the circumstances of the case, the gift is exempt under section 5 (i) (xiv) of the Gift-tax Act, 1958 ? " Briefly stated, the relevant facts are that up to the commencement of the previous year relevant for the assessment year 1969-70, there were two partners in the assessee-firm with 10 annas and 6 annas share, respectively. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, and assuming there was a gift, the gift was exempt under section 5(1)(xiv). Reliance in this behalf was placed on the Supreme Court decision in the case of CGT v. P. Gheevarghese, Travancore Timbers and Products [1972] 83 ITR 403. For the reasons given in the impugned order, the Tribunal held that the Supreme Court decision was not applicable and that the departmental authorities had rightly treated the assessee's giving up his 4 annas share in the partnership as a gift to his son. Shri Inamdar, learned counsel for the assessee, and Shri Deodhar, learned counsel for the Revenue, have been heard at length. They have referred to and relied upon a number of decisions. In our opinion, however, it is not necessar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there was a renunciation by one partner of a part of his share in favour of other partners by execution of document. These cases, therefore, have no bearing on the question before us. The facts in the case before us, as we have already pointed out, are that the incoming partner is a major ; he shares both profits and losses ; he was a graduate his father was 65 and suffering from asthma, and eventually died. In the circumstances, we consider it quite reasonable to infer that he was taken as a partner for consideration particularly in the light of the observations of our Court in the two cases referred to above. Accordingly, we answer the first question in the negative and in favour of the assessee. The second question is consequential ..... X X X X Extracts X X X X X X X X Extracts X X X X
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