Deemed gift under gift-tax law not established where land sale price gap was nominal and facts showed no rebuttal basis.

A sale of land was examined for possible treatment as a deemed gift under section 4(1)(a) of the Gift-tax Act, 1958. The appellate material showed only a nominal difference between the stated consideration and the assessed value, below fifteen per cent, and the land was not on the main road. The purchaser was also unrelated to the assessee. On the facts accepted by the appellate authority and the Tribunal, there was no rebuttal or basis to treat the transaction as a deemed gift, and the issue was answered in favour of the assessee.

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Issues: Whether the transaction of sale of land gave rise to a deemed gift under section 4(1)(a) of the Gift-tax Act, 1958.

Analysis: The difference between the stated consideration and the value assessed was found to be nominal, even less than fifteen per cent. The land was not on the main road and the purchaser was not related to the assessee. On the material accepted by the appellate authority and the Tribunal, there was no rebuttal showing any basis to treat the transaction as giving rise to a deemed gift.

Conclusion: The question was answered against the Revenue and in favour of the assessee; no deemed gift was made out.

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