GIFT OF IMMOVABLE PROPERTY FROM A FIRM

The definition of the term 'Relative' does not include Partnership Firms. Parents are the only partners is not relevent for exemption. Also refer Sec 56 (2)(vii).

Yes, rajeev is right. Further if you want gift to be exempted then show that the gift has been given to kids by the parents (i.e. any one) in their individual capacity and not as partners of the firm. But in order to do that the immovable property should be transferred to one of the partner (i.e. in their individual capacity) at the value in which it is appearing at firm's books.