https://www.taxtmi.com/caselaws?id=15474 A genuine reconstitution of a firm, with admission of a new partner who contributed capital and assumed future partnership liabilities and business duties, was treated as supported by consideration and not as a gift. The reduction in an existing partner's profit-sharing ratio, by itself, did not convert the reallocation of shares into a taxable gift. The allotment of a profit share to the minor, who also brought capital into the firm, likewise could not be treated as a gift of the shares previously held by the other partners. The separate claim based on exemption under section 5(1)(xiv) of the Gift-tax Act was not examined because it did not survive. en-us Thu, 17 Jun 1999 00:00:00 +0530 Thu, 06 Aug 2009 17:47:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15474 A genuine reconstitution of a firm, with admission of a new partner who contributed capital and assumed future partnership liabilities and business duties, was treated as supported by consideration and not as a gift. The reduction in an existing partner's profit-sharing ratio, by itself, did not convert the reallocation of shares into a taxable gift. The allotment of a profit share to the minor, who also brought capital into the firm, likewise could not be treated as a gift of the shares previously held by the other partners. The separate claim based on exemption under section 5(1)(xiv) of the Gift-tax Act was not examined because it did not survive. Case-Laws Income Tax Thu, 17 Jun 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15474