THE COMMISSIONER OF GIFT-TAX, KERALA vs DR. GEORGE KURUVILLA

The Supreme Court ruled that the exemption under Section 5(1)(xiv) of the Gift Tax Act, 1958, does not apply to gifts made by a donor unless they are made in the course of carrying on a business, profession, or vocation and are bona fide for that purpose. In this case, the medical practitioner claimed exemption for a gift of a hospital building to his son, who later joined his profession, but failed to provide evidence that the gift was made in the course of his business. Consequently, the Court held that the assessee was not entitled to the exemption and upheld the decision of the Gift-tax Officer and the Appellate Commissioner.