https://www.taxtmi.com/caselaws?id=8978 Conversion of a proprietary business into a partnership, with transfer of part of the business assets to incoming partners, was held not to qualify for exemption under section 5(1)(xiv) of the Gift-tax Act, 1958. Although the induction of partners could be bona fide for business purposes and commercially expedient, the transfer was not made "in the course of carrying on a business" because that expression covers only a gift incidental to ongoing business activity, not a transfer of the business itself or part of it. Once the business became partnership property, it ceased to be the same assessee's business. The exemption was therefore denied. en-us Fri, 03 Dec 1971 00:00:00 +0530 Wed, 17 Jun 2009 18:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8978 Conversion of a proprietary business into a partnership, with transfer of part of the business assets to incoming partners, was held not to qualify for exemption under section 5(1)(xiv) of the Gift-tax Act, 1958. Although the induction of partners could be bona fide for business purposes and commercially expedient, the transfer was not made "in the course of carrying on a business" because that expression covers only a gift incidental to ongoing business activity, not a transfer of the business itself or part of it. Once the business became partnership property, it ceased to be the same assessee's business. The exemption was therefore denied. Case-Laws Income Tax Fri, 03 Dec 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8978