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1970 (4) TMI 60 - SC - Income TaxWhether, on the facts and in the circumstances of the case, the assessee was entitled to the exemption in respect of G. K. Hospital and the adjoining land of 1.38 cents under section 5(1)(xiv) of the Gift-tax Act ? Held that:- The donor is exempt under section 5(1)(xiv) from liability to pay tax only if the gift is in the course of carrying on a business, profession or vocation and is made bona fide for the purpose of such business, profession or vocation. The clause does not enact that a gift made by a person carrying on any business is exempt from tax, nor does it provide that a gift is exempt from tax merely because the property is used for the purpose for which it was used by the donor. Without deciding whether the test of " commercial expediency " is strictly appropriate to the claim for exemption under section 5(1)(xiv), we are of the view that there is no evidence on the record to prove that the gift to Thomas was " in the course of carrying on the business " of the donor, and " for the purpose of the business. " Appeal is allowed and the order passed by the High Court is set aside
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