Adequate consideration: transfers below market value are not gifts if bonafide inability to obtain market value is proved. Section 4(1)(a) deems a gift equal to the excess of market value over consideration only after the assessing authority determines that the transfer was made otherwise than for adequate consideration. Market value normally constitutes adequate consideration, but if the transferor proves cogent and bonafide reasons for inability to obtain full market value, the consideration may be regarded as adequate; the burden of proof lies with the transferor to satisfy the assessing authority.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Adequate consideration: transfers below market value are not gifts if bonafide inability to obtain market value is proved.
Section 4(1)(a) deems a gift equal to the excess of market value over consideration only after the assessing authority determines that the transfer was made otherwise than for adequate consideration. Market value normally constitutes adequate consideration, but if the transferor proves cogent and bonafide reasons for inability to obtain full market value, the consideration may be regarded as adequate; the burden of proof lies with the transferor to satisfy the assessing authority.
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