https://www.taxtmi.com/caselaws?id=16923 Political donations qualify for the business-purpose exemption under the Gift-tax Act only where they have a real, integral and bona fide connection with the donor's business. A contribution to a political party's election fund, made in anticipation that it may attain power and adopt favourable policies, is too remote and uncertain to satisfy that test. The distinction between a political party and the Government, together with the absence of an assured business benefit, negates the required business nexus. Company-law provisions and related circular guidance on political contributions do not govern the narrower gift-tax exemption. The donation was therefore liable to gift-tax. en-us Tue, 27 Jan 1998 00:00:00 +0530 Mon, 14 Sep 2009 11:15:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16923 Political donations qualify for the business-purpose exemption under the Gift-tax Act only where they have a real, integral and bona fide connection with the donor's business. A contribution to a political party's election fund, made in anticipation that it may attain power and adopt favourable policies, is too remote and uncertain to satisfy that test. The distinction between a political party and the Government, together with the absence of an assured business benefit, negates the required business nexus. Company-law provisions and related circular guidance on political contributions do not govern the narrower gift-tax exemption. The donation was therefore liable to gift-tax. Case-Laws Income Tax Tue, 27 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16923