https://www.taxtmi.com/caselaws?id=8407 Exemption under section 5(1)(xiv) of the Gift-tax Act, 1958 is available only where the gift is made in the course of carrying on a business and bona fide for the purpose of that business. A mere conversion of a proprietary concern into a partnership does not by itself satisfy the statutory test. The assessee must prove business necessity and commercial expediency, and production of the partnership deed alone is insufficient. On the facts, the transfer was found to be motivated by benefit to family members, not by advancement of the business, so the claimed exemption was denied. en-us Fri, 19 Nov 1971 00:00:00 +0530 Sat, 11 Apr 2009 12:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8407 Exemption under section 5(1)(xiv) of the Gift-tax Act, 1958 is available only where the gift is made in the course of carrying on a business and bona fide for the purpose of that business. A mere conversion of a proprietary concern into a partnership does not by itself satisfy the statutory test. The assessee must prove business necessity and commercial expediency, and production of the partnership deed alone is insufficient. On the facts, the transfer was found to be motivated by benefit to family members, not by advancement of the business, so the claimed exemption was denied. Case-Laws Income Tax Fri, 19 Nov 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8407