https://www.taxtmi.com/caselaws?id=13311 Allotment of firm property to a minor admitted to the benefits of partnership, on severance and settlement of accounts, is treated as a mutual adjustment of pre-existing rights under the Partnership Act rather than a transfer under the Gift-tax Act. The minor has a statutory share in the firm's property and profits, and that share is worked out on severance in the same manner as in retirement or dissolution. A shortfall-recovery clause akin to owelty does not change the character of the transaction. On this basis, no deemed gift arises. en-us Thu, 20 Jan 2005 00:00:00 +0530 Thu, 31 Jan 2013 16:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13311 Allotment of firm property to a minor admitted to the benefits of partnership, on severance and settlement of accounts, is treated as a mutual adjustment of pre-existing rights under the Partnership Act rather than a transfer under the Gift-tax Act. The minor has a statutory share in the firm's property and profits, and that share is worked out on severance in the same manner as in retirement or dissolution. A shortfall-recovery clause akin to owelty does not change the character of the transaction. On this basis, no deemed gift arises. Case-Laws Income Tax Thu, 20 Jan 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13311