https://www.taxtmi.com/caselaws?id=61533 A reduction in existing partners' profit-sharing ratio on reconstitution of a profitable partnership, where incoming partners and minors contributed little or no commensurate consideration, was treated as a transfer of rights in partnership assets and goodwill without adequate consideration and therefore as a taxable gift. The tribunal relied on the wide statutory meanings of "gift", "property" and "transfer of property", together with the factual indicators of substantial goodwill and asset undervaluation, to sustain gift-tax liability. The valuation based on past profits, balance-sheets and wealth-tax values was also upheld because no substantiated challenge to the computation was advanced. en-us Thu, 07 Aug 2003 00:00:00 +0530 Thu, 13 Jan 2011 11:52:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61533 A reduction in existing partners' profit-sharing ratio on reconstitution of a profitable partnership, where incoming partners and minors contributed little or no commensurate consideration, was treated as a transfer of rights in partnership assets and goodwill without adequate consideration and therefore as a taxable gift. The tribunal relied on the wide statutory meanings of "gift", "property" and "transfer of property", together with the factual indicators of substantial goodwill and asset undervaluation, to sustain gift-tax liability. The valuation based on past profits, balance-sheets and wealth-tax values was also upheld because no substantiated challenge to the computation was advanced. Case-Laws Income Tax Thu, 07 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61533