https://www.taxtmi.com/caselaws?id=14941 The controlling test under section 4(1)(a) of the Gift-tax Act, 1958 is whether the consideration for a transfer is inadequate having regard to the transaction's circumstances, not whether it merely falls below market value. A bona fide transfer of a firm's assets to a company formed by the same partners, where the business continues and the partners and shareholders are identical, does not by itself justify treating the whole transaction or separate assets such as goodwill, machinery, or stock as a deemed gift unless the stated consideration is shown not to be the true consideration. The transfer was therefore not a deemed gift. en-us Thu, 30 Jul 1998 00:00:00 +0530 Mon, 27 Jul 2009 12:14:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14941 The controlling test under section 4(1)(a) of the Gift-tax Act, 1958 is whether the consideration for a transfer is inadequate having regard to the transaction's circumstances, not whether it merely falls below market value. A bona fide transfer of a firm's assets to a company formed by the same partners, where the business continues and the partners and shareholders are identical, does not by itself justify treating the whole transaction or separate assets such as goodwill, machinery, or stock as a deemed gift unless the stated consideration is shown not to be the true consideration. The transfer was therefore not a deemed gift. Case-Laws Income Tax Thu, 30 Jul 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14941