https://www.taxtmi.com/caselaws?id=206204 Section 45(3) deems the value recorded in a firm's books as the full value of consideration when a proprietary capital asset is transferred to a partnership in which the transferor becomes a partner, so capital gains may be computed on the revalued amount. On the gift-tax issue, a transfer to a firm does not attract deemed gift-tax under section 4(1)(a) unless the property is transferred for inadequate consideration; where incoming partners contribute capital, share profits and losses, and assume obligations under the partnership deed, the consideration is treated as adequate. The capital gains addition was therefore sustained, while the gift-tax levy was not. en-us Wed, 02 Sep 2009 00:00:00 +0530 Thu, 06 Jun 2013 09:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206204 Section 45(3) deems the value recorded in a firm's books as the full value of consideration when a proprietary capital asset is transferred to a partnership in which the transferor becomes a partner, so capital gains may be computed on the revalued amount. On the gift-tax issue, a transfer to a firm does not attract deemed gift-tax under section 4(1)(a) unless the property is transferred for inadequate consideration; where incoming partners contribute capital, share profits and losses, and assume obligations under the partnership deed, the consideration is treated as adequate. The capital gains addition was therefore sustained, while the gift-tax levy was not. Case-Laws Income Tax Wed, 02 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206204