TMI Blog1981 (7) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... artnership firm which was reconstituted along with the assessees assessment and three more partners, namely Shri P.C. Sogani, M/s Universal Mines Crushers P. Ltd. and Shri Arun Kumar Sogani. The shares of the present assessees were reduced to 15 per cent each. The share of Shri Prakash Chand Sogani remained at 30 per cent while instead of 20 per cent shares of Smt. Munni Devi, 25 per cent was given to M/s Universal Mines Crushers P. Ltd. and 15 per cent to Arun Kumar Sogani. The GTO was of the opinion that this amounted to relinquishment of 15 per cent and 5 per cent of the shares and was, therefore, a transfer of property without any consideration. Consequently, it was liable to assessment as a deemed gift. Since in the Gift-tax assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s considerations and, therefore, no Gift-tax was leviable in view of the expressed provisions contained in s. 5 (1) (xiv) of the GT Act. He also referred to the judgments, reliance whereupon had been placed by the assessee before the CGT, Madras vs. N. Palaniappa Mudaliar Ors. (1978) 113 ITR 440 (Mad), V.O. Markose vs. CIT (1975) 98 ITR 504 (Ker). According to him there was adequate consideration between the assessee and the incoming partners when the assessee's share were reduced from 30 per cent and 20 per cent to 15 per cent. Both the assessees were inactive partners and the firm desired to extend its business activities. It, therefore, not only took partners who not only brought capital but also expert advice and services. It was a ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son of Sri Prakash Chand Sogani and this might be true. Moreover the ladies whose shares were reduced latter are the wives of the brother a nephews of Sri Prakash Chand Sogani might not be taking much interest in the business. It has also been pointed out in the reply that M/s Universal Miners Crushers (P) Ltd. to which 25 per cent share was given in the partnership had contributed a capital of Rs. 84,374 and the capital of the assessees had been correspondingly reduced. A further fact to note in this behalf is that after the reconstitution of the partnership, the sales of this concern were tremendously increased. For the 3 years proceeding and succeeding the new partnership sales and property were Rs. 63,00,000 and odd, Rs. 75,00,000 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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