https://www.taxtmi.com/caselaws?id=66854 A reduction in a partner's profit-sharing share on reconstitution of a firm, without fresh capital or other consideration, is treated as a transfer of property and may attract gift-tax because partnership rights and goodwill are property. The bona fide relinquishment exception under section 4(1)(c) does not apply where the transaction is only a mutual readjustment of partnership interests and not an independent surrender supported by consideration or other exempting circumstances. On this reasoning, the gift-tax assessment was upheld and the challenge failed. en-us Mon, 22 Aug 1988 00:00:00 +0530 Mon, 07 Mar 2011 17:21:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66854 A reduction in a partner's profit-sharing share on reconstitution of a firm, without fresh capital or other consideration, is treated as a transfer of property and may attract gift-tax because partnership rights and goodwill are property. The bona fide relinquishment exception under section 4(1)(c) does not apply where the transaction is only a mutual readjustment of partnership interests and not an independent surrender supported by consideration or other exempting circumstances. On this reasoning, the gift-tax assessment was upheld and the challenge failed. Case-Laws Income Tax Mon, 22 Aug 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66854