https://www.taxtmi.com/caselaws?id=38274 A reduction in a partner's share on reconstitution of a partnership is not a gift if the incoming partners contribute capital, assume liabilities and future losses, and join for business expansion and administrative support. The operative test is whether the transfer is voluntary and without consideration in money or money's worth; where such consideration exists, the transaction falls outside the statutory definition of "gift". On the stated facts, the reduction in partnership shares did not attract gift-tax. en-us Wed, 22 Sep 1976 00:00:00 +0530 Mon, 05 Apr 2010 12:43:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38274 A reduction in a partner's share on reconstitution of a partnership is not a gift if the incoming partners contribute capital, assume liabilities and future losses, and join for business expansion and administrative support. The operative test is whether the transfer is voluntary and without consideration in money or money's worth; where such consideration exists, the transaction falls outside the statutory definition of "gift". On the stated facts, the reduction in partnership shares did not attract gift-tax. Case-Laws Income Tax Wed, 22 Sep 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38274