SRI JAGATRAM AHUJA vs THE COMMISSIONER OF GIFT TAX

The Supreme Court addressed the interpretation of the Gift-tax Act, 1958, specifically under Section 2(xii) regarding the definition of 'gift'. The Court held that the release of rights by a partner in a firm for a consideration exceeding the market value of the assets does not constitute a gift under the Act. The High Court's ruling against the assessee was upheld, affirming that the transaction was a legitimate sale rather than a gift.