https://www.taxtmi.com/caselaws?id=7186 Under the Gift-tax Act, a voluntary transfer is taxable as a gift only if it is made without consideration in money or money's worth. The Bombay High Court applied the contractual sense of consideration, as qualified by the statute, and held that consideration need not pass directly to the transferor; it may consist of a commercial benefit conferred on a third party where the transferor accepts that benefit as part of the bargain. On the facts, the renunciation of right shares formed part of an integrated commercial arrangement under which the transferee agreed to supply vehicles and advance a loan to the company controlled by the assessees. The transfer was therefore not gratuitous and was not chargeable to gift-tax. en-us Fri, 26 Apr 1968 00:00:00 +0530 Thu, 12 Feb 2009 12:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7186 Under the Gift-tax Act, a voluntary transfer is taxable as a gift only if it is made without consideration in money or money's worth. The Bombay High Court applied the contractual sense of consideration, as qualified by the statute, and held that consideration need not pass directly to the transferor; it may consist of a commercial benefit conferred on a third party where the transferor accepts that benefit as part of the bargain. On the facts, the renunciation of right shares formed part of an integrated commercial arrangement under which the transferee agreed to supply vehicles and advance a loan to the company controlled by the assessees. The transfer was therefore not gratuitous and was not chargeable to gift-tax. Case-Laws Income Tax Fri, 26 Apr 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7186