Paragraph 3 of Instruction No 1063.

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..... of Instruction No 1063 the Board had clarified that Gift Tax officers should take into account the consideration flowing from the person in whose favour the interest in the firm has been transferred. It had further been clarified that the consideration could be in the form of capital introduced in the business or in the form of labour (as in the case of a working partner) or both and the Gift Tax .....

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..... e case is not covered by section 5(1)(xiv) and the consideration flowing from the persons in whose favour the change has taken place is not adequate. The ambit of the exemption available under section 5(1)(xiv) has been discussed at length by the Supreme Court in Commissioner of Gift Tax, Kerala Vs. Cheevarghese (1972) 82 ITR 403 at pages 409 to 411. 3. These instructions may please be brought to .....

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