https://www.taxtmi.com/caselaws?id=70419 A transfer made for a stated price together with retained rights of reconveyance and first option/pre-emption was not treated as involving inadequate consideration for gift-tax purposes. The retained contractual rights formed part of the real bargain, so the transfer could not be tested by market value alone or by a higher guideline value adopted for stamp duty. The proper inquiry was whether the transaction was bona fide and whether the total consideration was reasonable and adequate. On that footing, section 4(1)(a) of the Gift-tax Act was not attracted and the gift-tax assessments were cancelled. en-us Wed, 29 May 1991 00:00:00 +0530 Sat, 16 Apr 2011 10:34:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70419 A transfer made for a stated price together with retained rights of reconveyance and first option/pre-emption was not treated as involving inadequate consideration for gift-tax purposes. The retained contractual rights formed part of the real bargain, so the transfer could not be tested by market value alone or by a higher guideline value adopted for stamp duty. The proper inquiry was whether the transaction was bona fide and whether the total consideration was reasonable and adequate. On that footing, section 4(1)(a) of the Gift-tax Act was not attracted and the gift-tax assessments were cancelled. Case-Laws Income Tax Wed, 29 May 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70419