https://www.taxtmi.com/caselaws?id=7537 A partner's interest in a firm is transferable property, but a gift under the Gift-tax Act arises only where the transfer is voluntary and without consideration in money or money's worth. On the facts discussed, admitting two employees as partners was not gratuitous because they contributed experience, assumed liability for losses, were to work in the business, and their admission avoided the need to pay them as employees. The revenue failed to prove absence of consideration. The transaction therefore did not amount to a taxable gift, and it was unnecessary to decide whether it constituted a transfer within the wider charging definitions. en-us Thu, 19 Sep 1968 00:00:00 +0530 Wed, 25 Feb 2009 18:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7537 A partner's interest in a firm is transferable property, but a gift under the Gift-tax Act arises only where the transfer is voluntary and without consideration in money or money's worth. On the facts discussed, admitting two employees as partners was not gratuitous because they contributed experience, assumed liability for losses, were to work in the business, and their admission avoided the need to pay them as employees. The revenue failed to prove absence of consideration. The transaction therefore did not amount to a taxable gift, and it was unnecessary to decide whether it constituted a transfer within the wider charging definitions. Case-Laws Income Tax Thu, 19 Sep 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7537