https://www.taxtmi.com/caselaws?id=248696 A binding family arrangement made to equalise and consolidate family holdings is not a gift unless it is a voluntary transfer without consideration in the legal sense; on that basis, shares transferred under such an arrangement were not treated as gifted property, and the recipient could not claim the previous owner's holding period or cost basis on a gift footing. The text also notes that reassessment was valid where the original assessment had not examined whether the surplus on sale of the shares, credited to capital reserve, affected book profit under section 115JB, so the reopening was not a mere change of opinion. The book profit adjustment was sustained because routing the surplus to capital reserve did not exclude it from profit computation. en-us Fri, 30 May 2014 00:00:00 +0530 Sat, 21 Jun 2014 13:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=248696 A binding family arrangement made to equalise and consolidate family holdings is not a gift unless it is a voluntary transfer without consideration in the legal sense; on that basis, shares transferred under such an arrangement were not treated as gifted property, and the recipient could not claim the previous owner's holding period or cost basis on a gift footing. The text also notes that reassessment was valid where the original assessment had not examined whether the surplus on sale of the shares, credited to capital reserve, affected book profit under section 115JB, so the reopening was not a mere change of opinion. The book profit adjustment was sustained because routing the surplus to capital reserve did not exclude it from profit computation. Case-Laws Income Tax Fri, 30 May 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=248696