https://www.taxtmi.com/caselaws?id=56153 Induction of a new partner into a firm did not by itself create a taxable gift when the incoming partner contributed substantial capital under the partnership terms. The existing HUF partner's reduced profit share was treated as supported by adequate consideration because the new partner brought in agreed capital and conferred business advantage on the firm. On those facts, the reduction in profit share was not regarded as a transfer without consideration, and alleged gift-tax liability was not sustainable merely because goodwill was involved. en-us Wed, 31 Jan 1996 00:00:00 +0530 Thu, 02 Dec 2010 09:41:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56153 Induction of a new partner into a firm did not by itself create a taxable gift when the incoming partner contributed substantial capital under the partnership terms. The existing HUF partner's reduced profit share was treated as supported by adequate consideration because the new partner brought in agreed capital and conferred business advantage on the firm. On those facts, the reduction in profit share was not regarded as a transfer without consideration, and alleged gift-tax liability was not sustainable merely because goodwill was involved. Case-Laws Income Tax Wed, 31 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56153