S. GOPALAKRISHNA PAI v. GIFT TAX OFFICER
[Citation -1985-LL-0807-3]
Citation | 1985-LL-0807-3 |
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Appellant Name | S. GOPALAKRISHNA PAI |
Respondent Name | GIFT TAX OFFICER |
Court | ITAT |
Relevant Act | Income-tax |
Date of Order | 07/08/1985 |
Judgment | View Judgment |
Keyword Tags | contribution of capital • adequate consideration • capital contribution • working partner • gift-tax |
Bot Summary: | Counsel for the assessee kly urged that the assessee s son Sri Rameshkumar Pai had contributed capital and was also taken as a working partner. The assessee s son, namely Sri Rameshkumar Pai has contributed capital for taking him as a partner from 1st April 1979. Since the new partner had contributed capital and was also a working partner, there was adequate consideration for taking him as a partner. In TIR No. 269 of 1979 in the case of CGT vs. V. M. Philip, the Kerala High Court vide its judgment dt 1st Aug. 1984 held that contribution of capital by the incoming partner is adequate consideration and there is no gift. In D. C. Shah Others vs. CGT 134 ITR 492 the Karnataka High Court held that when there is capital contribution that would be adequate consideration for being inducted as a partner. 28th June, 1985 after referring to the entire case law held that the contribution of capital by the incoming partner was adequate consideration and no gift was involved. In our view, since the incoming partner Sri.Ramesh Kumar Pai was contributed capital and also is a working partner, there is adequate consideration and no gift is involved. |