https://www.taxtmi.com/caselaws?id=37607 Goodwill is treated as property and may form part of a professional concern's assets; when a proprietary concern is reconstituted as a partnership, the incoming partner may acquire an interest in the partnership assets and, incidentally, in the goodwill of the former concern. The statutory definition of transfer under the Gift-tax Act is wide enough to cover such a transaction. However, where the son is admitted as a partner and contributes full-time services, the partnership deed as a whole supplies consideration through mutual rights and obligations, so the goodwill transfer cannot be isolated as one without or for inadequate consideration. The deeming provision for gift tax is therefore not attracted. en-us Tue, 18 Nov 1975 00:00:00 +0530 Tue, 30 Mar 2010 18:41:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37607 Goodwill is treated as property and may form part of a professional concern's assets; when a proprietary concern is reconstituted as a partnership, the incoming partner may acquire an interest in the partnership assets and, incidentally, in the goodwill of the former concern. The statutory definition of transfer under the Gift-tax Act is wide enough to cover such a transaction. However, where the son is admitted as a partner and contributes full-time services, the partnership deed as a whole supplies consideration through mutual rights and obligations, so the goodwill transfer cannot be isolated as one without or for inadequate consideration. The deeming provision for gift tax is therefore not attracted. Case-Laws Income Tax Tue, 18 Nov 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37607