https://www.taxtmi.com/caselaws?id=8697 Redistribution of a partner's profit-sharing ratio on admitting new partners can constitute a gift where the transaction, viewed as an integrated whole, transfers a proportionate interest in partnership goodwill. The analysis treats goodwill as an asset of the firm and notes that, even if the partnership deed does not expressly deal with goodwill, the incoming partners may acquire a share in that asset through reconstitution and realignment of the partnership structure. On these facts, the arrangement was distinguished from the Supreme Court decision relied on by the assessee, because the transfer was not confined to goodwill alone but formed part of a broader transfer of interest in property. The conclusion was that the assessee had made a gift of part of his share in the firm's goodwill. en-us Wed, 22 Mar 1972 00:00:00 +0530 Tue, 02 Jun 2009 20:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8697 Redistribution of a partner's profit-sharing ratio on admitting new partners can constitute a gift where the transaction, viewed as an integrated whole, transfers a proportionate interest in partnership goodwill. The analysis treats goodwill as an asset of the firm and notes that, even if the partnership deed does not expressly deal with goodwill, the incoming partners may acquire a share in that asset through reconstitution and realignment of the partnership structure. On these facts, the arrangement was distinguished from the Supreme Court decision relied on by the assessee, because the transfer was not confined to goodwill alone but formed part of a broader transfer of interest in property. The conclusion was that the assessee had made a gift of part of his share in the firm's goodwill. Case-Laws Income Tax Wed, 22 Mar 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8697