https://www.taxtmi.com/caselaws?id=59777 Reduction of profit-sharing shares on reconstitution of a partnership firm was treated as a business arrangement, not a gratuitous transfer. Where new partners brought capital and active participation, and the firm's business expanded after reconstitution, the change in shares was supported by commercial expediency and adequate consideration. On those facts, the reduction in the assessees' shares did not constitute a taxable deemed gift, and gift-tax proceedings were held unsustainable. The departmental appeals therefore failed on the substantive gift-tax issue. en-us Tue, 21 Jul 1981 00:00:00 +0530 Sat, 01 Jan 2011 11:39:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59777 Reduction of profit-sharing shares on reconstitution of a partnership firm was treated as a business arrangement, not a gratuitous transfer. Where new partners brought capital and active participation, and the firm's business expanded after reconstitution, the change in shares was supported by commercial expediency and adequate consideration. On those facts, the reduction in the assessees' shares did not constitute a taxable deemed gift, and gift-tax proceedings were held unsustainable. The departmental appeals therefore failed on the substantive gift-tax issue. Case-Laws Income Tax Tue, 21 Jul 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59777