https://www.taxtmi.com/caselaws?id=13066 Transfer of goodwill and reconstitution of partnership shares does not attract gift-tax where the arrangement is supported by consideration, including the transferee partner's additional capital contribution and responsibilities, and is undertaken as a bona fide business reorganisation. Where the Tribunal finds that the revised profit-sharing structure reduces the outgoing partner's burdens while serving better management and improved profits for the firm, the transaction falls outside the concept of a taxable gift and is protected by the business-purpose exemption under the Gift-tax Act. The Revenue's contrary authorities were distinguishable on their facts. en-us Mon, 17 Sep 2001 00:00:00 +0530 Tue, 26 May 2009 12:26:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13066 Transfer of goodwill and reconstitution of partnership shares does not attract gift-tax where the arrangement is supported by consideration, including the transferee partner's additional capital contribution and responsibilities, and is undertaken as a bona fide business reorganisation. Where the Tribunal finds that the revised profit-sharing structure reduces the outgoing partner's burdens while serving better management and improved profits for the firm, the transaction falls outside the concept of a taxable gift and is protected by the business-purpose exemption under the Gift-tax Act. The Revenue's contrary authorities were distinguishable on their facts. Case-Laws Income Tax Mon, 17 Sep 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13066