https://www.taxtmi.com/caselaws?id=23388 Reduction of the existing partners' profit-sharing ratios on admission of new partners did not amount to a taxable gift under the Gift-tax Act because a gift requires a voluntary transfer of property without consideration in money or money's worth. The incoming partners were admitted on the basis of one contributing capital and the other agreeing to work as a partner, which constituted consideration for the shares allotted to them. The transfer of part of the profit-sharing interest was therefore not a voluntary transfer without consideration, and no gift-tax liability arose. en-us Mon, 09 Jul 1990 00:00:00 +0530 Fri, 18 Dec 2009 17:43:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23388 Reduction of the existing partners' profit-sharing ratios on admission of new partners did not amount to a taxable gift under the Gift-tax Act because a gift requires a voluntary transfer of property without consideration in money or money's worth. The incoming partners were admitted on the basis of one contributing capital and the other agreeing to work as a partner, which constituted consideration for the shares allotted to them. The transfer of part of the profit-sharing interest was therefore not a voluntary transfer without consideration, and no gift-tax liability arose. Case-Laws Income Tax Mon, 09 Jul 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23388