https://www.taxtmi.com/caselaws?id=10871 Exemption under section 5(1)(xiv) of the Gift-tax Act, 1958 applies only where a transfer is made in the course of carrying on a business, profession or vocation and bona fide for that purpose. On the stated facts, conversion of a proprietary concern into a partnership did not satisfy that requirement because the partnership deed and surrounding circumstances did not show commercial expediency or business necessity. The incoming partners had no capital contribution, the children were still students, and there was no reliable evidence that reconstitution was needed for the medical profession. The transfer therefore did not qualify for exemption and was taxable as a gift. en-us Thu, 12 Aug 2004 00:00:00 +0530 Mon, 27 Jul 2009 09:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10871 Exemption under section 5(1)(xiv) of the Gift-tax Act, 1958 applies only where a transfer is made in the course of carrying on a business, profession or vocation and bona fide for that purpose. On the stated facts, conversion of a proprietary concern into a partnership did not satisfy that requirement because the partnership deed and surrounding circumstances did not show commercial expediency or business necessity. The incoming partners had no capital contribution, the children were still students, and there was no reliable evidence that reconstitution was needed for the medical profession. The transfer therefore did not qualify for exemption and was taxable as a gift. Case-Laws Income Tax Thu, 12 Aug 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10871