https://www.taxtmi.com/caselaws?id=9294 Where shares are transferred to connected transferees with the object of avoiding or reducing capital gains tax, section 52(1) applies and the consideration is deemed to be the fair market value on the date of transfer. On that footing, the transfer is chargeable to capital gains on the market value basis. The same transaction cannot then be treated inconsistently as a transfer for inadequate consideration under the Gift-tax Act, because the statutory deeming fiction for capital gains must be carried to its legal consequence. Simultaneous levy of gift-tax and capital gains tax on the same deemed consideration is therefore impermissible. en-us Mon, 19 Feb 1973 00:00:00 +0530 Sun, 21 Jun 2009 17:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9294 Where shares are transferred to connected transferees with the object of avoiding or reducing capital gains tax, section 52(1) applies and the consideration is deemed to be the fair market value on the date of transfer. On that footing, the transfer is chargeable to capital gains on the market value basis. The same transaction cannot then be treated inconsistently as a transfer for inadequate consideration under the Gift-tax Act, because the statutory deeming fiction for capital gains must be carried to its legal consequence. Simultaneous levy of gift-tax and capital gains tax on the same deemed consideration is therefore impermissible. Case-Laws Income Tax Mon, 19 Feb 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9294