https://www.taxtmi.com/caselaws?id=70266 A deemed gift under gift-tax law is not established merely because the Department values transferred theatres above the capital account credit; the note states that continued partnership interest and future appreciation to the transferor's benefit indicate adequate consideration. It also states that a reduction in a partner's share from 50% to 40% is not, by itself, a deemed gift where the incoming partners contribute capital, assume liabilities and share losses, and the reconstitution is bona fide. The analysis emphasises that the Revenue must show absence of adequate consideration or lack of bona fides before deeming a gift. en-us Thu, 26 Nov 1987 00:00:00 +0530 Fri, 15 Apr 2011 11:12:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70266 A deemed gift under gift-tax law is not established merely because the Department values transferred theatres above the capital account credit; the note states that continued partnership interest and future appreciation to the transferor's benefit indicate adequate consideration. It also states that a reduction in a partner's share from 50% to 40% is not, by itself, a deemed gift where the incoming partners contribute capital, assume liabilities and share losses, and the reconstitution is bona fide. The analysis emphasises that the Revenue must show absence of adequate consideration or lack of bona fides before deeming a gift. Case-Laws Income Tax Thu, 26 Nov 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70266