https://www.taxtmi.com/caselaws?id=16788 For deemed gift-tax under section 4(1)(a) of the Gift-tax Act, 1958, adequate consideration is not the same as the highest market value; a transfer will not be treated as for inadequate consideration if the price is fair or reasonable. A departmental valuation showing a higher market value does not by itself establish inadequacy, and only a price so low as to shock the conscience can justify that conclusion. On the facts, the Tribunal found no material inadequacy in the consideration, so the transfer was held not to attract deemed gift-tax. en-us Tue, 11 Feb 1997 00:00:00 +0530 Sat, 12 Sep 2009 12:24:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16788 For deemed gift-tax under section 4(1)(a) of the Gift-tax Act, 1958, adequate consideration is not the same as the highest market value; a transfer will not be treated as for inadequate consideration if the price is fair or reasonable. A departmental valuation showing a higher market value does not by itself establish inadequacy, and only a price so low as to shock the conscience can justify that conclusion. On the facts, the Tribunal found no material inadequacy in the consideration, so the transfer was held not to attract deemed gift-tax. Case-Laws Income Tax Tue, 11 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16788