https://www.taxtmi.com/caselaws?id=234193 Subscription to shares at face value was not treated as a transfer otherwise than for adequate consideration for purposes of deemed gift tax under Section 4(1)(a) of the Gift Tax Act, 1958. The Court held that the charging fiction must be strictly construed and that adequate consideration is assessed in a broad commercial sense, not by mechanically comparing the issue price with market value. It further placed the burden on the Revenue to prove that the statutory conditions for deemed gift were met. As no material showed inadequate consideration in the statutory sense, the share subscription fell outside Section 4(1)(a) and the addition was unsustainable. en-us Thu, 30 May 2013 00:00:00 +0530 Sat, 26 Oct 2013 10:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=234193 Subscription to shares at face value was not treated as a transfer otherwise than for adequate consideration for purposes of deemed gift tax under Section 4(1)(a) of the Gift Tax Act, 1958. The Court held that the charging fiction must be strictly construed and that adequate consideration is assessed in a broad commercial sense, not by mechanically comparing the issue price with market value. It further placed the burden on the Revenue to prove that the statutory conditions for deemed gift were met. As no material showed inadequate consideration in the statutory sense, the share subscription fell outside Section 4(1)(a) and the addition was unsustainable. Case-Laws Income Tax Thu, 30 May 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=234193