https://www.taxtmi.com/caselaws?id=23872 Advances shown consistently in the assessee's books as loans were not treated as gifts when made, because the accounting entries kept them as recoverable balances from year to year. Under section 4(1)(c) of the Gift-tax Act, 1958, a deemed gift arises only when there is a release or abandonment of the debt, so the relevant date is the write-off of the balance. The later letter said to show no intention to recover could not displace the contemporaneous books, which remained the decisive evidence. The deemed gift therefore arose only when the debt was finally written off and abandoned. en-us Mon, 17 Apr 1989 00:00:00 +0530 Fri, 15 Jan 2010 10:09:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23872 Advances shown consistently in the assessee's books as loans were not treated as gifts when made, because the accounting entries kept them as recoverable balances from year to year. Under section 4(1)(c) of the Gift-tax Act, 1958, a deemed gift arises only when there is a release or abandonment of the debt, so the relevant date is the write-off of the balance. The later letter said to show no intention to recover could not displace the contemporaneous books, which remained the decisive evidence. The deemed gift therefore arose only when the debt was finally written off and abandoned. Case-Laws Income Tax Mon, 17 Apr 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23872