Mani K. Thomas v. CGT (2018) 404 ITR 257 (Ker) (HC)

Gift -tax Act, 1958

S.4:Gifts to include certain transfers — Firm — Induction of new partners to develop the business of the firm —Reallocation of shares will not amount to gift hence not liable to gift tax . [ S. 4(1)(a),26(6)]

Allowing the reference the Court held that Court  the specific contention of the assessee that the induction of new partners was in the course of the business to develop the business of the firm was not considered by the Tribunal. The order of the Tribunal was not sustainable either on the facts or in law.