https://www.taxtmi.com/caselaws?id=8351 Goodwill of a proprietary business was treated as property capable of transfer, and when the assessee admitted his sons as partners, the goodwill passed to the partnership by operation of the arrangement. As no consideration in money or money's worth was received for that transfer, it constituted a gift within the Gift-tax Act. The claimed exemption under section 5(1)(xiv) failed because the transfer was not shown to have been made in the course of carrying on the business and bona fide for its purpose; a mere object of improved efficiency was insufficient. Gift-tax liability on the goodwill transfer was therefore upheld. en-us Fri, 20 Aug 1971 00:00:00 +0530 Fri, 10 Apr 2009 16:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8351 Goodwill of a proprietary business was treated as property capable of transfer, and when the assessee admitted his sons as partners, the goodwill passed to the partnership by operation of the arrangement. As no consideration in money or money's worth was received for that transfer, it constituted a gift within the Gift-tax Act. The claimed exemption under section 5(1)(xiv) failed because the transfer was not shown to have been made in the course of carrying on the business and bona fide for its purpose; a mere object of improved efficiency was insufficient. Gift-tax liability on the goodwill transfer was therefore upheld. Case-Laws Income Tax Fri, 20 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8351