https://www.taxtmi.com/caselaws?id=69025 A proprietary business reconstituted into a partnership by admitting family members and reducing the proprietor's profit share was treated as non-taxable because the incoming partners contributed capital, undertook further funding, and assumed profit-and-loss sharing, showing real commercial consideration rather than a gratuitous transfer. The arrangement was also held to fall within the business-purpose exemption under section 5(1)(xiv) of the Gift-tax Act, 1958, because it was bona fide, supported by consideration in money or money's worth, and entered into for business assistance, continuity, and expansion. The transaction was therefore regarded as neither a gift nor a deemed gift. en-us Thu, 08 Feb 1990 00:00:00 +0530 Mon, 04 Apr 2011 15:56:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69025 A proprietary business reconstituted into a partnership by admitting family members and reducing the proprietor's profit share was treated as non-taxable because the incoming partners contributed capital, undertook further funding, and assumed profit-and-loss sharing, showing real commercial consideration rather than a gratuitous transfer. The arrangement was also held to fall within the business-purpose exemption under section 5(1)(xiv) of the Gift-tax Act, 1958, because it was bona fide, supported by consideration in money or money's worth, and entered into for business assistance, continuity, and expansion. The transaction was therefore regarded as neither a gift nor a deemed gift. Case-Laws Income Tax Thu, 08 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69025