https://www.taxtmi.com/caselaws?id=70622 A partner's surrender of part of his profit share on reconstitution of a firm was examined for gift-tax liability under the Gift-tax Act, 1958. The decisive point was whether the reduction in share was unsupported by consideration or whether the other partners provided real and adequate consideration through capital contribution, sharing of losses and, in one case, technical services. On the facts, those reciprocal obligations constituted sufficient consideration, so the redistribution of partnership interests was not a deemed gift. The levy of gift-tax was therefore not sustainable, and the assessee's appeal succeeded. en-us Fri, 12 Jul 1985 00:00:00 +0530 Mon, 18 Apr 2011 11:39:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70622 A partner's surrender of part of his profit share on reconstitution of a firm was examined for gift-tax liability under the Gift-tax Act, 1958. The decisive point was whether the reduction in share was unsupported by consideration or whether the other partners provided real and adequate consideration through capital contribution, sharing of losses and, in one case, technical services. On the facts, those reciprocal obligations constituted sufficient consideration, so the redistribution of partnership interests was not a deemed gift. The levy of gift-tax was therefore not sustainable, and the assessee's appeal succeeded. Case-Laws Income Tax Fri, 12 Jul 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70622