https://www.taxtmi.com/caselaws?id=37622 Exemption under section 5(1)(xiv) of the Gift-tax Act, 1958 applies only where the gift has a real and direct nexus with the business and is made for a genuine commercial purpose. A transfer made merely because business is being carried on is insufficient; the arrangement must protect the undertaking, advance its commercial object, or ensure continuity. On the stated facts, the goodwill transfer on formation of the partnership was connected with the existing business, the younger partners were already familiar with its operations, and the deed preserved continuity, including a right to resume the business on a partner's retirement. The exemption was therefore available. en-us Sat, 04 Feb 1978 00:00:00 +0530 Wed, 31 Mar 2010 10:34:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37622 Exemption under section 5(1)(xiv) of the Gift-tax Act, 1958 applies only where the gift has a real and direct nexus with the business and is made for a genuine commercial purpose. A transfer made merely because business is being carried on is insufficient; the arrangement must protect the undertaking, advance its commercial object, or ensure continuity. On the stated facts, the goodwill transfer on formation of the partnership was connected with the existing business, the younger partners were already familiar with its operations, and the deed preserved continuity, including a right to resume the business on a partner's retirement. The exemption was therefore available. Case-Laws Income Tax Sat, 04 Feb 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37622