https://www.taxtmi.com/caselaws?id=282183 A reduction in an existing partner's profit-sharing ratio on reconstitution of a partnership was not treated as a gift under section 4(1)(a) of the Gift-tax Act, 1958. The incoming partner contributed capital, agreed to share losses, and undertook business services, so the change in shares was supported by adequate consideration rather than a transfer without consideration. The prevailing view of several High Courts was preferred over contrary Madras High Court decisions, and no gift-tax liability arose on the revised partnership arrangement. en-us Thu, 20 Nov 1986 00:00:00 +0530 Thu, 25 Jul 2019 15:31:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=282183 A reduction in an existing partner's profit-sharing ratio on reconstitution of a partnership was not treated as a gift under section 4(1)(a) of the Gift-tax Act, 1958. The incoming partner contributed capital, agreed to share losses, and undertook business services, so the change in shares was supported by adequate consideration rather than a transfer without consideration. The prevailing view of several High Courts was preferred over contrary Madras High Court decisions, and no gift-tax liability arose on the revised partnership arrangement. Case-Laws Income Tax Thu, 20 Nov 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=282183