JUDGMENT

Bharucha, J.-The High Court of Kerala answered in the affirmative and against the Revenue the following question :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that no element of gift was involved when the assessee retired from the firms in which he had been a partner?"

The Revenue is in appeal by special leave.

2. The assessment year with which we are concerned is the Assessment Year 1973-74. The assessee retired with effect from 1st April, 1972 from two firms in which he was a partner. The Gift Tax Officer assessed him to gift tax on the basis that, upon such retirement, there was a gift because the assessee had surrendered his rights in the firms. The assessee appealed and the Appellate Assistant Commissioner upheld the assessee s contention that there was no voluntary act by him and that he had only relinquished his right and interest in the firms so that there was no gift. Before the Tribunal it was urged on behalf of the Revenue that the amounts taken by the assessee from the firms for his shares therein was less than the market value thereof since the goodwill of the firm had not been taken into account. There had, there