Valuation of a partner's interest in a firm.

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....on the allotment of specified shares 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 moneys worth; (ii) When there are changes in the profit-sharing ratio of the existing partners of a firm and the allotment of higher shares to one or more partners is without adequate cons....

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....rtner who has a right to share 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 goodwill- an intangible asset-to the market value of other assets of the firm (in case it possessed goodwill) irrespective of whether goodwill was reflected in the balance-sheet or not. As regards the types of the cases covered by item (ii) above....