https://www.taxtmi.com/caselaws?id=8568 Gift-tax exemption under section 5(1)(xiv) applies only where the transfer has a real nexus with the carrying on of the business and is made bona fide for a business purpose. On the facts discussed, the conversion of a proprietorship into a partnership was part of a genuine business reorganisation: the sons were already assisting in the business, the structure was changed to promote advancement and strength, restrictions were imposed to protect the partnership, and further expansion was intended. The arrangement was therefore treated as integrally connected with preservation and promotion of the business, and the gift was regarded as exempt. en-us Tue, 18 Jan 1972 00:00:00 +0530 Thu, 30 Apr 2009 16:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8568 Gift-tax exemption under section 5(1)(xiv) applies only where the transfer has a real nexus with the carrying on of the business and is made bona fide for a business purpose. On the facts discussed, the conversion of a proprietorship into a partnership was part of a genuine business reorganisation: the sons were already assisting in the business, the structure was changed to promote advancement and strength, restrictions were imposed to protect the partnership, and further expansion was intended. The arrangement was therefore treated as integrally connected with preservation and promotion of the business, and the gift was regarded as exempt. Case-Laws Income Tax Tue, 18 Jan 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8568