https://www.taxtmi.com/caselaws?id=40268 Distribution of a firm's asset to an individual partner while the partnership continued was treated as a transfer, because the firm's interest in the asset was replaced by the partner's exclusive interest. The text distinguishes this from allocation on dissolution or retirement, where partners merely work out their existing share and no transfer occurs. Where the asset is allotted for less than its value, the shortfall falls within the deeming provision for gifts. On that basis, the machinery distributed to the partners during the subsistence of the firm constituted a deemed gift under section 4(1)(a) of the Gift-tax Act, 1958. en-us Wed, 20 Sep 2000 00:00:00 +0530 Mon, 26 Apr 2010 16:05:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40268 Distribution of a firm's asset to an individual partner while the partnership continued was treated as a transfer, because the firm's interest in the asset was replaced by the partner's exclusive interest. The text distinguishes this from allocation on dissolution or retirement, where partners merely work out their existing share and no transfer occurs. Where the asset is allotted for less than its value, the shortfall falls within the deeming provision for gifts. On that basis, the machinery distributed to the partners during the subsistence of the firm constituted a deemed gift under section 4(1)(a) of the Gift-tax Act, 1958. Case-Laws Income Tax Wed, 20 Sep 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40268