https://www.taxtmi.com/caselaws?id=371876 Transfer of property by a proprietor into a partnership firm was examined under the Gift Tax Act, but the book value recorded in the firm's accounts was held not to be real consideration for gift tax purposes. The differential between market value and book value could not be assessed as a taxable gift merely because the property was brought into the firm at a lower book value. The underlying principle applied was that a partner's right in partnership property is not a separate identifiable ownership right while the firm subsists, and the relevant entry in the books does not create a gift. The subject matter was therefore treated as a transfer to the firm, but not as a gift attracting gift tax. en-us Mon, 26 Nov 2018 00:00:00 +0530 Thu, 13 Dec 2018 14:06:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=371876 Transfer of property by a proprietor into a partnership firm was examined under the Gift Tax Act, but the book value recorded in the firm's accounts was held not to be real consideration for gift tax purposes. The differential between market value and book value could not be assessed as a taxable gift merely because the property was brought into the firm at a lower book value. The underlying principle applied was that a partner's right in partnership property is not a separate identifiable ownership right while the firm subsists, and the relevant entry in the books does not create a gift. The subject matter was therefore treated as a transfer to the firm, but not as a gift attracting gift tax. Case-Laws Income Tax Mon, 26 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=371876