https://www.taxtmi.com/caselaws?id=38297 Conversion of a proprietary business into a partnership, with the major son admitted as a partner and minor sons admitted to benefits, was held not to amount to a taxable gift of goodwill. The arrangement was supported by adequate commercial consideration, including capital contribution, the major son's services, and shared loss-bearing obligations, and the proprietor's need for assistance in the business. No proprietary asset was transferred to the minor sons without consideration, and the attempt to treat goodwill alone as a gifted asset was rejected. The transaction therefore did not attract gift-tax under the Gift-tax Act. en-us Tue, 21 Sep 1976 00:00:00 +0530 Mon, 05 Apr 2010 13:30:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38297 Conversion of a proprietary business into a partnership, with the major son admitted as a partner and minor sons admitted to benefits, was held not to amount to a taxable gift of goodwill. The arrangement was supported by adequate commercial consideration, including capital contribution, the major son's services, and shared loss-bearing obligations, and the proprietor's need for assistance in the business. No proprietary asset was transferred to the minor sons without consideration, and the attempt to treat goodwill alone as a gifted asset was rejected. The transaction therefore did not attract gift-tax under the Gift-tax Act. Case-Laws Income Tax Tue, 21 Sep 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38297