https://www.taxtmi.com/caselaws?id=69320 A write-off of a time-barred debt owed by a son was examined under the Gift-tax Act to see whether it constituted a deemed gift under section 4(1)(c). The liability had continued to be shown by both parties in their wealth-tax returns for later years, indicating that it was treated as an existing debt until the relevant accounting year. The assessee also had plausible reasons for not enforcing recovery, including the family relationship and the impracticability of proceedings. On those facts, the write-off was treated as bona fide and, even if viewed as abandonment of the debt, it was not a taxable transfer by way of gift. en-us Thu, 15 May 1980 00:00:00 +0530 Wed, 06 Apr 2011 12:04:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69320 A write-off of a time-barred debt owed by a son was examined under the Gift-tax Act to see whether it constituted a deemed gift under section 4(1)(c). The liability had continued to be shown by both parties in their wealth-tax returns for later years, indicating that it was treated as an existing debt until the relevant accounting year. The assessee also had plausible reasons for not enforcing recovery, including the family relationship and the impracticability of proceedings. On those facts, the write-off was treated as bona fide and, even if viewed as abandonment of the debt, it was not a taxable transfer by way of gift. Case-Laws Income Tax Thu, 15 May 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69320