https://www.taxtmi.com/caselaws?id=39862 Admission of a new partner and the resulting reduction in an existing partner's share constituted a gift because the transfer was without consideration. The exemption under section 5(1)(xiv) of the Gift-tax Act, 1958 applied because the gift had a direct and bona fide nexus with the carrying on of the profession: the induction supported the firm's management, continuity and business needs, and was not required to be shown as essential to prevent stoppage of work. The statutory test was not total inability to manage, but a real connection between the transfer and proper conduct of the business or profession. en-us Thu, 07 Feb 1974 00:00:00 +0530 Tue, 20 Apr 2010 17:18:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39862 Admission of a new partner and the resulting reduction in an existing partner's share constituted a gift because the transfer was without consideration. The exemption under section 5(1)(xiv) of the Gift-tax Act, 1958 applied because the gift had a direct and bona fide nexus with the carrying on of the profession: the induction supported the firm's management, continuity and business needs, and was not required to be shown as essential to prevent stoppage of work. The statutory test was not total inability to manage, but a real connection between the transfer and proper conduct of the business or profession. Case-Laws Income Tax Thu, 07 Feb 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39862