https://www.taxtmi.com/caselaws?id=18709 Gift-tax liability on reconstitution of a partnership is not presumed merely because a partner's profit share is reduced or goodwill is said to have been transferred. Liability depends on the facts, including whether the firm's assets, with goodwill, exceeded its liabilities and whether incoming partners or minors contributed sufficient capital. Where no material shows such excess value or inadequate contribution, the settled criteria for treating the transaction as a taxable gift are not met, and no gift-tax is payable. en-us Tue, 02 Jan 1996 00:00:00 +0530 Sat, 31 Oct 2009 15:10:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18709 Gift-tax liability on reconstitution of a partnership is not presumed merely because a partner's profit share is reduced or goodwill is said to have been transferred. Liability depends on the facts, including whether the firm's assets, with goodwill, exceeded its liabilities and whether incoming partners or minors contributed sufficient capital. Where no material shows such excess value or inadequate contribution, the settled criteria for treating the transaction as a taxable gift are not met, and no gift-tax is payable. Case-Laws Income Tax Tue, 02 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18709