https://www.taxtmi.com/caselaws?id=15948 Section 4(1)(a) of the Gift-tax Act, 1958 deems a gift where property is transferred for less than adequate consideration, and the relevant test is the market value of the property on the date of transfer against the value of the consideration then received. The transferee's later asset position cannot be used retrospectively to inflate the value of shares issued as consideration, so the Tribunal's reliance on the break-up value of the subsidiary companies after the transaction was legally incorrect. The Income-tax Act provisions on transfer did not alter the gift-tax analysis. On that basis, the difference in value was liable to gift-tax. en-us Tue, 16 Dec 1997 00:00:00 +0530 Mon, 31 Aug 2009 11:21:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15948 Section 4(1)(a) of the Gift-tax Act, 1958 deems a gift where property is transferred for less than adequate consideration, and the relevant test is the market value of the property on the date of transfer against the value of the consideration then received. The transferee's later asset position cannot be used retrospectively to inflate the value of shares issued as consideration, so the Tribunal's reliance on the break-up value of the subsidiary companies after the transaction was legally incorrect. The Income-tax Act provisions on transfer did not alter the gift-tax analysis. On that basis, the difference in value was liable to gift-tax. Case-Laws Income Tax Tue, 16 Dec 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15948