1985 (8) TMI 113

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... w.e.f. 1st April 1979, his son Sri Rameshkumar Pai was admitted as a partner with 20 per cent share. Thus the assessee's share was reduced to 30 per cent as his son was given 20 per cent share. The GTO held that the assessee had foregone 20 per cent of his profit sharing rights without adequate consideration in favour of his son and this is reliable to be taxed under the GT Act. He determined the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r, there was adequate consideration for taking him as a partner. Thus, there was no gift involve. In TIR No. 269 of 1979 in the case of CGT vs. V. M. Philip, the Kerala High Court vide its judgment dt 1st Aug. 1984 held that contribution of capital by the incoming partner is adequate consideration and there is no gift. In D. C. Shah & Others vs. CGT (1982) 134 ITR 492 (Kar) the Karnataka High Cour....