https://www.taxtmi.com/caselaws?id=62677 Induction of a new working partner in a family partnership, with a corresponding reduction in the existing partner's share, was treated as supported by consideration in money's worth because the new partner assumed business services and obligations. On that basis, the arrangement did not amount to a gratuitous transfer attracting gift-tax. In the alternative, the transfer was regarded as made in the course of business for bona fide business purposes, since the partner was added to manage the business due to the assessee's age and ill health. The transaction therefore fell within the business exemption under section 5(1)(xiv) of the Gift-tax Act. en-us Mon, 09 Jun 1980 00:00:00 +0530 Fri, 21 Jan 2011 10:57:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62677 Induction of a new working partner in a family partnership, with a corresponding reduction in the existing partner's share, was treated as supported by consideration in money's worth because the new partner assumed business services and obligations. On that basis, the arrangement did not amount to a gratuitous transfer attracting gift-tax. In the alternative, the transfer was regarded as made in the course of business for bona fide business purposes, since the partner was added to manage the business due to the assessee's age and ill health. The transaction therefore fell within the business exemption under section 5(1)(xiv) of the Gift-tax Act. Case-Laws Income Tax Mon, 09 Jun 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62677