https://www.taxtmi.com/caselaws?id=66165 A partner's transfer of personal assets into a firm is treated as a transfer, but the consideration is the partner's profit share and entitlement to net partnership assets, which is not readily monetisable. The text states that the amendment to section 4(1)(a) of the Gift-tax Act, 1958 changed the valuation method under Schedule II, but did not remove the need to compare the value transferred with the consideration received. On a comparable break-up valuation, the consideration was not shown to be inadequate, and the subsequent conversion of the firm into a company under Part IX of the Companies Act, 1956 involved statutory vesting rather than a tax-evading device. No deemed gift arose on that analysis. en-us Tue, 27 Nov 2001 00:00:00 +0530 Mon, 21 Feb 2011 18:34:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66165 A partner's transfer of personal assets into a firm is treated as a transfer, but the consideration is the partner's profit share and entitlement to net partnership assets, which is not readily monetisable. The text states that the amendment to section 4(1)(a) of the Gift-tax Act, 1958 changed the valuation method under Schedule II, but did not remove the need to compare the value transferred with the consideration received. On a comparable break-up valuation, the consideration was not shown to be inadequate, and the subsequent conversion of the firm into a company under Part IX of the Companies Act, 1956 involved statutory vesting rather than a tax-evading device. No deemed gift arose on that analysis. Case-Laws Income Tax Tue, 27 Nov 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66165