https://www.taxtmi.com/caselaws?id=77493 Allotment of redeemable non-cumulative preference shares at face value was held not to constitute a deemed gift under the Gift-tax Act because an allotment is not a transfer of existing property and the statutory concept of adequate consideration was satisfied within the company law framework. The court noted that the shares were issued directly by the company, there was no material showing a colourable device or non-business consideration, and the proviso to section 4(1)(a) prevented the deeming fiction from operating where the consideration was fixed by law. The transaction was therefore not liable to gift-tax. en-us Wed, 27 Jan 2010 00:00:00 +0530 Tue, 06 Sep 2011 17:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=77493 Allotment of redeemable non-cumulative preference shares at face value was held not to constitute a deemed gift under the Gift-tax Act because an allotment is not a transfer of existing property and the statutory concept of adequate consideration was satisfied within the company law framework. The court noted that the shares were issued directly by the company, there was no material showing a colourable device or non-business consideration, and the proviso to section 4(1)(a) prevented the deeming fiction from operating where the consideration was fixed by law. The transaction was therefore not liable to gift-tax. Case-Laws Income Tax Wed, 27 Jan 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=77493