1971 (12) TMI 32

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....section 26(3) of the Gift-tax Act, 1958. The assessee, G. Ethirajulu, was a partner of an unregistered firm, Kasetty Rangappa and Sons, for several years. By December 15, 1956, all the other partners of the firm retired and he became the sole proprietor of the business which he carried on as such till March 31, 1957. On April 1, 1957, he converted the business from a proprietary business into a pa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....business should not be valued and included in the assets in assessing the value of the gift was not also accepted. The Gift-tax Officer assessed the value of 4 the gift at Rs. 1,00,000 and levied gift-tax on that amount. The Appellate Assistant Commissioner confirmed the order of the Gift-tax. On further appeal to the Tribunal, the latter while holding that there was gift that the goodwill of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s made by any person in the course of carrying on a business, profession or vocation, to the extent to which the gift is proved to the satisfaction of the Gift-tax Officer to have been made bona fide for the purpose of such business, profession or vocation." It is apparent that the gift must satisfy two conditions before an assessee can claim the benefit of the exemption. They are : (1) it must....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fer of the very business or a part of it, even if such transfer is to facilitate the business. There is an even more formidable obstacle in the way of the assessee. It appears to be essential, in order to claim the benefit of section 5(1)(xiv), that the business should continue to be that of the same person who made the gift. If, as a result of the gift, the business changes hands we do not see....