1989 (3) TMI 128

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..... llate 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 relates to the assessment year 1974-75. The respo .....

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..... e 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 the view that the gift was made in favour of .....

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..... . 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 daughter-in-law would be inducted as partners. T .....

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..... r 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, the question whether the respondent relinquis .....

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..... daughter-in-law on his retirement from the firm. OUT answer to the question referred to this court is in the affirmative, against the Revenue and in favour of the assessee. A copy of this judgment, under the seal of this court and the signature of the Registrar, will be forwarded to the Income-tax Appellate Tribunal, Cochin Bench, as required by law.
Case laws, Decisions, Judgements, Orders .....

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