Data Transfer modifier: can't get it to work trying to make slightly smoothed corners with Data Transfer, but i accomplish nothing besides making two faces look more flat than they should be. several tutorials show how to do it (this one, for example) and i think i've set everything correctly, including Adding Custom Split Data, but i still can't get the right result.

here is .blend file.

and here's a screenshot of modifier settings:


extra info: i have latest stable version of Blender - 2.78c. tried some several years old plugins and they gave no results. also attempted to install blend4web's vertex normals editing tool, but i couldn't even see it in the plugins list. any help will be appreciated.
thanks to @lemon 's hint i managed to find a solution and it was quite simple:

source and target objects must overlap! 

they must sit at the same spot, just like for normal baking, and moving either object even slightly will noticeably change the result. by the way, it is not necessary to keep source object visible.