COMMISSIONER OF GIFT TAX GUJARAT vs CHHOTALAL MOHANLAL

The Supreme Court held that goodwill of a firm constitutes an asset under the Gift Tax Act, 1958, specifically Sections 2(xii) and 4. The Court established that the transfer of goodwill, along with the admission of minor partners to the benefits of the partnership, constitutes a taxable gift. The appeal by the Revenue was allowed, affirming the Gift Tax Officer's valuation and ruling that the transfer of partnership benefits amounted to a gift under the Act.