https://www.taxtmi.com/caselaws?id=60902 Reduction of a partner's profit-sharing ratio on reconstitution of a firm was not treated as a taxable gift where the incoming partners and minors contributed capital in proportion to their revised shares. The existing partners merely withdrew excess capital corresponding to the reduction in their interests, and the relinquished share was not assigned to any identified recipient without consideration. On those facts, there was no transfer of property or gratuitous surrender within the statutory concept of gift, so gift-tax was not leviable. en-us Mon, 20 Mar 1995 00:00:00 +0530 Sat, 08 Jan 2011 14:52:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60902 Reduction of a partner's profit-sharing ratio on reconstitution of a firm was not treated as a taxable gift where the incoming partners and minors contributed capital in proportion to their revised shares. The existing partners merely withdrew excess capital corresponding to the reduction in their interests, and the relinquished share was not assigned to any identified recipient without consideration. On those facts, there was no transfer of property or gratuitous surrender within the statutory concept of gift, so gift-tax was not leviable. Case-Laws Income Tax Mon, 20 Mar 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60902