https://www.taxtmi.com/caselaws?id=23437 On reconstitution of a partnership, a reduction in an existing partner's share coupled with admission of minors to the benefits of partnership may amount to a transfer of property under the Gift-tax Act if the transferred interest is not supported by adequate consideration. The earlier Gujarat view that no gift arose merely because partnership shares were adjusted could not be followed after the Supreme Court's later position on money value transferred without consideration. The Tribunal had not separately examined whether the minors' capital contribution of Rs. 4,000 each was adequate consideration for the rights conferred, so that issue required fresh factual consideration and valuation analysis. The matter was therefore sent back for reconsideration on consideration and adequacy of value. en-us Wed, 19 Jul 1989 00:00:00 +0530 Sat, 19 Dec 2009 13:00:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23437 On reconstitution of a partnership, a reduction in an existing partner's share coupled with admission of minors to the benefits of partnership may amount to a transfer of property under the Gift-tax Act if the transferred interest is not supported by adequate consideration. The earlier Gujarat view that no gift arose merely because partnership shares were adjusted could not be followed after the Supreme Court's later position on money value transferred without consideration. The Tribunal had not separately examined whether the minors' capital contribution of Rs. 4,000 each was adequate consideration for the rights conferred, so that issue required fresh factual consideration and valuation analysis. The matter was therefore sent back for reconsideration on consideration and adequacy of value. Case-Laws Income Tax Wed, 19 Jul 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23437