https://www.taxtmi.com/caselaws?id=17511 A partner's contribution of individual property to the capital of a firm is a transfer of property because the partner's exclusive interest becomes a shared interest. It is not a gift or deemed gift under the Gift-tax Act where the consideration cannot be monetarily ascertained at the time of transfer, and a mere credit to the capital account is not treated as the true consideration in the absence of an express deeming rule. The claimed business exemption also fails because a contribution made on formation of the firm does not satisfy the statutory requirement that the gift be made in the course of the donor's own business for a bona fide business purpose. en-us Mon, 31 Mar 1997 00:00:00 +0530 Wed, 23 Sep 2009 10:38:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17511 A partner's contribution of individual property to the capital of a firm is a transfer of property because the partner's exclusive interest becomes a shared interest. It is not a gift or deemed gift under the Gift-tax Act where the consideration cannot be monetarily ascertained at the time of transfer, and a mere credit to the capital account is not treated as the true consideration in the absence of an express deeming rule. The claimed business exemption also fails because a contribution made on formation of the firm does not satisfy the statutory requirement that the gift be made in the course of the donor's own business for a bona fide business purpose. Case-Laws Income Tax Mon, 31 Mar 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17511