Re-alignment of profit sharing ratio among the partners of a firm.

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....ift-tax may arise in the following circumstances:- (i) When new partners are admitted to an existing firm and consequent upon the allotment of a specified share to them in profit/loss of the firm, the shares of the existing partners are reduced and the shares given to the new partners are without adequate consideration in money or money's worth. (ii) When there are changes in the profit shar....

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....oned circumstances in the case of a partner who has a right to share in the assets of the firm the Gift-tax Officer should in accordance with rule 10(3) of the Gift-tax Rules add the value of the good-will intangible asset to the market value of the other assets of the firm, in case it possessed good-will, irrespective of the fact whether it was reflected in the balance sheet or not. The Board are....