1988 (9) TMI 20

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....is sons as partners by allowing 1/4th share to each of the said partners by, partnership deed dated August 2, 1962, amounts to a gift and thereby upholding the inclusion by the Assistant Controller of Estate Duty of the entire difference between the market value and the book value of the assets of the firm, Korangani and Azizbagh Tea Estate, amounting to Rs. 6,45,459 dutiable as part of the estate of Shri J. P. Chaliha, the deceased, under sections 5 and 10 of the Estate Duty Act, 1953 ? The reference relates to the estate of Jadav Prasad Chaliha. He was planter-manufacturer and a tea merchant. He was the sole proprietor of business styled as Korangani and Azizbagh Tea Estate. He converted the sole proprietary business into a partnership b....

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....tes resulted in a gift in law and whether the three partners were donees" is the first question that arises in the case. We see Ranjit had agreed to devote his entire time to the business of the firm. Indrajit and Debabala agreed to devote attention to the work of the partnership firm as was required of them to do. Whether these factors form consideration ? If so, it is obvious, there is no gift under the laws of the country. The cases in CGT v. Karnaji Lumbaji [1969] 74 ITR 343 (Guj) and Addl. CGT v. A. A. Annamalai Nadar [1978] 113 ITR 574 (Mad) were cited on behalf of the accountable person to support the contention. It is seen in the latter case that the major son was taken as a partner of, the firm by the aged father. The major son a....