https://www.taxtmi.com/caselaws?id=282182 Retirement of a partner and induction of a new partner, with capital contributed by the incoming partner, was treated as an integrated reconstitution of the firm rather than a separate transfer of goodwill or partnership assets. A taxable gift arose only where there was a real transfer without adequate consideration or an unequal distribution producing a taxable benefit. Because the incoming partner contributed substantial capital and agreed to share losses, adequate consideration was present and no deemed gift was found in respect of goodwill or the retiring partner's interest. The gift-tax assessment was therefore not sustainable and the addition was annulled. en-us Tue, 28 Nov 1989 00:00:00 +0530 Thu, 25 Jul 2019 15:25:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=282182 Retirement of a partner and induction of a new partner, with capital contributed by the incoming partner, was treated as an integrated reconstitution of the firm rather than a separate transfer of goodwill or partnership assets. A taxable gift arose only where there was a real transfer without adequate consideration or an unequal distribution producing a taxable benefit. Because the incoming partner contributed substantial capital and agreed to share losses, adequate consideration was present and no deemed gift was found in respect of goodwill or the retiring partner's interest. The gift-tax assessment was therefore not sustainable and the addition was annulled. Case-Laws Income Tax Tue, 28 Nov 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=282182