The Commissioner Of Gift Tax, ... vs T.M. Louiz

The Supreme Court upheld the High Court's decision that the retirement of a partner from a firm does not constitute a gift under the Gift Tax Act, specifically referencing the definitions of 'gift' and 'transfer of property' in the Act. The Court found that the retiring partner merely relinquished his rights and interests in the partnership assets, which did not involve a voluntary transfer of property as defined under Section 2(xii) of the Gift Tax Act. Consequently, the appeal by the Revenue was dismissed, affirming that no gift tax was applicable in this scenario.