https://www.taxtmi.com/caselaws?id=11032 Contribution of a partner's own capital asset to a partnership firm amounts to a transfer because the partner's exclusive ownership is reduced to a shared partnership interest. However, the consideration for that transfer is not merely the credit in the partner's capital account; it is the composite right to share profits and to receive a share in the net assets on dissolution or retirement. Because that consideration cannot be reliably valued at the time of contribution, adequacy of consideration is not ascertainable in praesenti. Section 4(1)(a) of the Gift-tax Act, 1958 therefore could not be invoked, and no deemed gift arose from the transfer of the building to the firm. en-us Mon, 17 Feb 2003 00:00:00 +0530 Thu, 30 Jul 2009 09:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11032 Contribution of a partner's own capital asset to a partnership firm amounts to a transfer because the partner's exclusive ownership is reduced to a shared partnership interest. However, the consideration for that transfer is not merely the credit in the partner's capital account; it is the composite right to share profits and to receive a share in the net assets on dissolution or retirement. Because that consideration cannot be reliably valued at the time of contribution, adequacy of consideration is not ascertainable in praesenti. Section 4(1)(a) of the Gift-tax Act, 1958 therefore could not be invoked, and no deemed gift arose from the transfer of the building to the firm. Case-Laws Income Tax Mon, 17 Feb 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11032