https://www.taxtmi.com/caselaws?id=25326 A voluntary reduction of a partner's profit-sharing share on reconstitution of a firm, with a corresponding benefit to the other partners, amounted to a transfer of value and was treated as a taxable gift. The assessee's surrender of part of his profit rights therefore attracted gift-tax. The business exemption under section 5(1)(xiv) was unavailable because the gift had to be made in the course of business by the person carrying it on, and the required direct nexus with the business was absent where the donor was an individual and the business was carried on by the firm. en-us Fri, 10 Jul 1987 00:00:00 +0530 Thu, 28 Jan 2010 10:00:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25326 A voluntary reduction of a partner's profit-sharing share on reconstitution of a firm, with a corresponding benefit to the other partners, amounted to a transfer of value and was treated as a taxable gift. The assessee's surrender of part of his profit rights therefore attracted gift-tax. The business exemption under section 5(1)(xiv) was unavailable because the gift had to be made in the course of business by the person carrying it on, and the required direct nexus with the business was absent where the donor was an individual and the business was carried on by the firm. Case-Laws Income Tax Fri, 10 Jul 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25326