https://www.taxtmi.com/caselaws?id=356383 Shares transferred for alleged inadequate consideration were not liable to deemed gift treatment because the transferee company did not meet the statutory test of an investment company. The valuation method under the Gift Tax and Wealth Tax schedules applied only where the company's gross total income consisted mainly of income from house property, capital gains, or income from other sources, and that precondition was not satisfied. The authorities therefore erred in using the investment-company valuation rule. Once that rule was excluded, the shares had to be valued on book value, which exceeded the declared transfer price, so no inadequate consideration arose and no deemed gift liability was attracted on the Revenue's basis. en-us Thu, 22 Feb 2018 00:00:00 +0530 Tue, 06 Mar 2018 06:30:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356383 Shares transferred for alleged inadequate consideration were not liable to deemed gift treatment because the transferee company did not meet the statutory test of an investment company. The valuation method under the Gift Tax and Wealth Tax schedules applied only where the company's gross total income consisted mainly of income from house property, capital gains, or income from other sources, and that precondition was not satisfied. The authorities therefore erred in using the investment-company valuation rule. Once that rule was excluded, the shares had to be valued on book value, which exceeded the declared transfer price, so no inadequate consideration arose and no deemed gift liability was attracted on the Revenue's basis. Case-Laws Wealth-tax Thu, 22 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356383