https://www.taxtmi.com/caselaws?id=19111 Transfer of 65 per cent of an assessee's interest in a proprietary business to incoming partners was examined under the Gift-tax Act, 1958 on the question whether it was a gift. A transfer is taxable as a gift only if it is without consideration in money or money's worth; for that purpose, the meaning of consideration in the Indian Contract Act applies. Where incoming partners introduce capital at the transferor's request and that capital forms part of the contractual consideration for the transfer, the transaction is supported by consideration. The amount need not be paid directly to the transferor, and the taxability also depends on the partnership terms, including any goodwill element. en-us Thu, 06 Jul 1995 00:00:00 +0530 Wed, 04 Nov 2009 11:32:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19111 Transfer of 65 per cent of an assessee's interest in a proprietary business to incoming partners was examined under the Gift-tax Act, 1958 on the question whether it was a gift. A transfer is taxable as a gift only if it is without consideration in money or money's worth; for that purpose, the meaning of consideration in the Indian Contract Act applies. Where incoming partners introduce capital at the transferor's request and that capital forms part of the contractual consideration for the transfer, the transaction is supported by consideration. The amount need not be paid directly to the transferor, and the taxability also depends on the partnership terms, including any goodwill element. Case-Laws Income Tax Thu, 06 Jul 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19111