https://www.taxtmi.com/caselaws?id=24846 A genuine antecedent matrimonial arrangement can constitute adequate consideration when property is settled in performance of that obligation, rather than as a gratuitous transfer. The article states that contemporaneous letters and uncontroverted mediator affidavits supported the existence of a pre-nuptial agreement under which the assessee undertook to settle property for the children of the second marriage, and that this obligation was natural and probable on the facts. It further explains that adequate consideration must be measurable in money and more than mere love and affection, so a transfer made to discharge the prior promise is supported by adequate consideration and does not attract the clubbing rule in section 64 of the Income-tax Act, 1961. en-us Mon, 01 Aug 1988 00:00:00 +0530 Fri, 22 Jan 2010 17:02:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24846 A genuine antecedent matrimonial arrangement can constitute adequate consideration when property is settled in performance of that obligation, rather than as a gratuitous transfer. The article states that contemporaneous letters and uncontroverted mediator affidavits supported the existence of a pre-nuptial agreement under which the assessee undertook to settle property for the children of the second marriage, and that this obligation was natural and probable on the facts. It further explains that adequate consideration must be measurable in money and more than mere love and affection, so a transfer made to discharge the prior promise is supported by adequate consideration and does not attract the clubbing rule in section 64 of the Income-tax Act, 1961. Case-Laws Income Tax Mon, 01 Aug 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24846