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2002 (8) TMI 80 - HC - Income Tax"Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that on the reconstitution of the firm, M. K. Krishna Chetty, by the deed dated September 6, 1976, there is a gift by each of the erstwhile partners (assessees) in favour of the incoming partner, Asoka Betelnut Co. Pvt. Ltd., attracting levy of tax as held by the Gift-tax Officer?" - In this case, even though there is capital contribution by the newly inducted partner, the extent of the contribution has been found to be not commensurate with the value of the benefit conferred on that newly inducted partner by reason of reduction in the shares of the continuing partners in their share of the profits. Such reduction resulted in a gift. The question referred to us is therefore answered in favour of the Revenue and against the assessee.
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