https://www.taxtmi.com/caselaws?id=40301 A mere reduction in one partner's profit share, with a corresponding increase in another's, does not by itself establish a taxable gift under the Gift-tax Act, 1958. The existence of a gift must be supported by material showing a transfer of property from one person to another, and the Revenue bears that burden. In assessing a partnership arrangement, the partnership deed and other admissible evidence remain relevant to determine whether any property was transferred. Where the facts show no transfer of capital or other property, and the increase in a partner's share is explainable by capital contribution, experience, or responsibility, the transaction is not treated as a taxable gift. en-us Wed, 25 Sep 1996 00:00:00 +0530 Mon, 26 Apr 2010 18:03:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40301 A mere reduction in one partner's profit share, with a corresponding increase in another's, does not by itself establish a taxable gift under the Gift-tax Act, 1958. The existence of a gift must be supported by material showing a transfer of property from one person to another, and the Revenue bears that burden. In assessing a partnership arrangement, the partnership deed and other admissible evidence remain relevant to determine whether any property was transferred. Where the facts show no transfer of capital or other property, and the increase in a partner's share is explainable by capital contribution, experience, or responsibility, the transaction is not treated as a taxable gift. Case-Laws Income Tax Wed, 25 Sep 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40301