https://www.taxtmi.com/caselaws?id=8593 Section 5(1)(xiv) of the Gift-tax Act, 1958 exempts a gift only if it is made in the course of carrying on a business and bona fide for that business's purpose. The governing test requires an integral nexus between the transfer and business advancement, not merely a family arrangement or personal benefit. On the stated facts, the partnership was at will, the sons' business expertise was not shown, and the inclusion of a minor indicated a family-benefit element. The transfer therefore lacked the required business necessity or business improvement nexus and did not qualify for exemption. en-us Fri, 14 Apr 1972 00:00:00 +0530 Tue, 05 May 2009 16:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8593 Section 5(1)(xiv) of the Gift-tax Act, 1958 exempts a gift only if it is made in the course of carrying on a business and bona fide for that business's purpose. The governing test requires an integral nexus between the transfer and business advancement, not merely a family arrangement or personal benefit. On the stated facts, the partnership was at will, the sons' business expertise was not shown, and the inclusion of a minor indicated a family-benefit element. The transfer therefore lacked the required business necessity or business improvement nexus and did not qualify for exemption. Case-Laws Income Tax Fri, 14 Apr 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8593