https://www.taxtmi.com/caselaws?id=61300 Reconstitution of a partnership firm by admitting new partners with fresh capital for business expansion did not create a taxable gift where no identifiable goodwill or other property was shown to have been transferred by the existing partners. The records did not disclose any goodwill asset or redistribution of profits among the old partners, and the incoming partners were inducted to strengthen the business. The arrangement was treated as a genuine business-oriented reconstitution, not an assignment or alienation of property, so the exemption principle for transfers made in the course of business applied and no gift-tax liability arose. en-us Thu, 29 Mar 1984 00:00:00 +0530 Wed, 12 Jan 2011 11:26:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61300 Reconstitution of a partnership firm by admitting new partners with fresh capital for business expansion did not create a taxable gift where no identifiable goodwill or other property was shown to have been transferred by the existing partners. The records did not disclose any goodwill asset or redistribution of profits among the old partners, and the incoming partners were inducted to strengthen the business. The arrangement was treated as a genuine business-oriented reconstitution, not an assignment or alienation of property, so the exemption principle for transfers made in the course of business applied and no gift-tax liability arose. Case-Laws Income Tax Thu, 29 Mar 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61300