https://www.taxtmi.com/caselaws?id=37320 Disposition of goodwill on reconstitution of a partnership was not a taxable gift because gift-tax applies only to a voluntary transfer of existing property without consideration in money or money's worth. The partnership deed had to be read as a whole, and the incoming and continuing partners assumed reciprocal obligations, including sharing profits and losses, contributing capital when required, and participating in the business. Those obligations constituted valuable consideration, and the revenue failed to prove a gratuitous transfer. The goodwill arrangement therefore did not attract liability to gift-tax. en-us Fri, 11 Aug 1978 00:00:00 +0530 Mon, 29 Mar 2010 10:47:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37320 Disposition of goodwill on reconstitution of a partnership was not a taxable gift because gift-tax applies only to a voluntary transfer of existing property without consideration in money or money's worth. The partnership deed had to be read as a whole, and the incoming and continuing partners assumed reciprocal obligations, including sharing profits and losses, contributing capital when required, and participating in the business. Those obligations constituted valuable consideration, and the revenue failed to prove a gratuitous transfer. The goodwill arrangement therefore did not attract liability to gift-tax. Case-Laws Income Tax Fri, 11 Aug 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37320