https://www.taxtmi.com/caselaws?id=11578 Conversion of a proprietary concern into a partnership did not, on these facts, create a deemed gift under the Gift-tax Act because the incoming partners contributed capital and the Revenue had not shown inadequacy of consideration for the business as a whole. The business value could not be split by taxing only one asset. The closing stock also did not have to be revalued at market price, since the business continued without discontinuance and ordinary commercial valuation principles applied. The article therefore states that, in a continuing business, a mere change in business form does not by itself justify deemed-gift treatment or compulsory market-value stock revaluation. en-us Tue, 26 Nov 2002 00:00:00 +0530 Sat, 30 Jan 2010 17:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11578 Conversion of a proprietary concern into a partnership did not, on these facts, create a deemed gift under the Gift-tax Act because the incoming partners contributed capital and the Revenue had not shown inadequacy of consideration for the business as a whole. The business value could not be split by taxing only one asset. The closing stock also did not have to be revalued at market price, since the business continued without discontinuance and ordinary commercial valuation principles applied. The article therefore states that, in a continuing business, a mere change in business form does not by itself justify deemed-gift treatment or compulsory market-value stock revaluation. Case-Laws Income Tax Tue, 26 Nov 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11578