https://www.taxtmi.com/caselaws?id=25182 A surrender or reduction of a partner's share in goodwill and development rebate reserve is not a taxable gift under the Gift-tax Act where it is supported by consideration. The arrangement showed that the assessee's major sons were inducted into the business, with capital contributions contemplated and later made, indicating that consideration was intended to pass and did pass. On that footing, the transfer fell outside the definition of gift, and only any uncompensated portion, if present, could be treated as a deemed gift under the statutory provision. The transfer was therefore held not to constitute a gift, and the assessee's position was accepted. en-us Thu, 10 Sep 1987 00:00:00 +0530 Mon, 25 Jan 2010 18:21:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25182 A surrender or reduction of a partner's share in goodwill and development rebate reserve is not a taxable gift under the Gift-tax Act where it is supported by consideration. The arrangement showed that the assessee's major sons were inducted into the business, with capital contributions contemplated and later made, indicating that consideration was intended to pass and did pass. On that footing, the transfer fell outside the definition of gift, and only any uncompensated portion, if present, could be treated as a deemed gift under the statutory provision. The transfer was therefore held not to constitute a gift, and the assessee's position was accepted. Case-Laws Income Tax Thu, 10 Sep 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25182