https://www.taxtmi.com/caselaws?id=16045 Section 4(1)(a) of the Gift-tax Act, 1958 applies only where inadequate consideration is shown in a way that indicates evasion or lack of bona fides. Where unquoted shares are valued using a recognised method for investment companies, such as the average of break-up value and capitalised value based on maintainable profits, and there is no material showing collusion or a price so low as to be unfair, the Revenue cannot substitute its own market-based revaluation. On those facts, the deemed gift provision does not operate and no deemed gift arises. en-us Fri, 28 Nov 1997 00:00:00 +0530 Mon, 31 Aug 2009 16:35:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16045 Section 4(1)(a) of the Gift-tax Act, 1958 applies only where inadequate consideration is shown in a way that indicates evasion or lack of bona fides. Where unquoted shares are valued using a recognised method for investment companies, such as the average of break-up value and capitalised value based on maintainable profits, and there is no material showing collusion or a price so low as to be unfair, the Revenue cannot substitute its own market-based revaluation. On those facts, the deemed gift provision does not operate and no deemed gift arises. Case-Laws Income Tax Fri, 28 Nov 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16045