COMMISSIONER OF GIFT TAX Vs. A J RAJU

JUDGEMENT

(1.) This is a petition filed by the Revenue under Section 26(3) of the Gift-tax Act, 1958 ( Act for short) for the assessment year 1983-84.

(2.) The respondent was a partner in a firm 'M/s. Hotel Yuvarani'. He retired from the partnership firm with effect from 1.1.1982 during the accounting year relevant to the assessment year 1983-84. The assessing officer has completed the assessment determining the taxable gift at Rs. 52,280/- being of the opinion that the right to share in future profit of the firm as goodwill is forfeited by the assessee by retiring from the partnership firm. Aggrieved by the findings and conclusions reached by the assessing officer, the assessee had filed appeal before the Deputy Commissioner of Income Tax (Appeals), Thiruvananthapuram. The said appellate authority has confirmed the order passed by the assessing authority under the provisions of the Gift Tax Act.

(3.) The assessee , aggrieved by the aforesaid order, had carried the matter in second appeal before the Income Tax Appellate Tribunal. The Tribunal following the decision of this Court in the case of Commissioner of Gift Tax v. Smt. R. Sarojini, 1993 201 ITR 104 has allowed the appeal filed by the assessee.