https://www.taxtmi.com/caselaws?id=70411 Transfer of a business as a going concern to a company in exchange for shares of equal value did not create a deemed gift under section 4(1)(a) of the Gift-tax Act. The transaction was treated as a continuation of the partners' interest in the same property through shareholding, and the consideration in kind had to be valued by the break-up method with reference to the company's net wealth and shares issued. On that basis, any increase in asset value, including closing stock, was reflected in the share value, so no real inadequacy of consideration arose. The addition was therefore annulled in favour of the assessee. en-us Wed, 09 Jan 1991 00:00:00 +0530 Sat, 16 Apr 2011 10:19:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70411 Transfer of a business as a going concern to a company in exchange for shares of equal value did not create a deemed gift under section 4(1)(a) of the Gift-tax Act. The transaction was treated as a continuation of the partners' interest in the same property through shareholding, and the consideration in kind had to be valued by the break-up method with reference to the company's net wealth and shares issued. On that basis, any increase in asset value, including closing stock, was reflected in the share value, so no real inadequacy of consideration arose. The addition was therefore annulled in favour of the assessee. Case-Laws Income Tax Wed, 09 Jan 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70411