9911796707
TMI Blog1984 (4) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... of his major sons as partners as per the partnership deed executed on 4-11-1975 giving each of them 15 per cent share. They have been taken as working partners. It appears each of them have contributed a capital of Rs. 5,000. The GTO held that there is an element of gift to the extent of 30 per cent in favour of the incoming partners. He proceeded to calculate the value of the goodwill at two yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the two sons, the assessee has gifted to the extent of 30 per cent and so, there was gift. Thus, the assessment made is valid. 3. We have considered the rival submissions. The proprietary business of the assessee has been converted into a partnership one. He took his two sons as partners giving 15 per cent share to each of them under the partnership deed executed on 4-11-1975. The two sons h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was supposed to work and earn profits. In this decision two earlier decisions of that Court in CGT v. Smt. Lalita B. Shah [1979] 118 ITR 794 and CGT v. Nagji Dullabhji [1979] 118 ITR 804 were followed. In D.C. Shah v. CGT [1982] 134 ITR 492 the Karnataka High Court, on the facts of that case held that there was a contribution of capital as well as participation in business and that would constit ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
