https://www.taxtmi.com/caselaws?id=8220 A transfer of goodwill on converting a proprietary concern into a partnership was held not to qualify for exemption under section 5(1)(xiv) of the Gift-tax Act, 1958. The exemption applies only where the gift is made in the course of carrying on a business, profession or vocation and is shown to be bona fide for that purpose. The assessee bore the burden of proving the facts necessary to bring the transaction within the exemption, but produced no evidence beyond the partnership deed. Recitals that former employees were admitted as partners were insufficient to establish business necessity or bona fide business purpose, so the transaction remained taxable. en-us Mon, 09 Aug 1971 00:00:00 +0530 Mon, 06 Apr 2009 10:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8220 A transfer of goodwill on converting a proprietary concern into a partnership was held not to qualify for exemption under section 5(1)(xiv) of the Gift-tax Act, 1958. The exemption applies only where the gift is made in the course of carrying on a business, profession or vocation and is shown to be bona fide for that purpose. The assessee bore the burden of proving the facts necessary to bring the transaction within the exemption, but produced no evidence beyond the partnership deed. Recitals that former employees were admitted as partners were insufficient to establish business necessity or bona fide business purpose, so the transaction remained taxable. Case-Laws Income Tax Mon, 09 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8220