https://www.taxtmi.com/caselaws?id=26105 A notice under section 16(1) of the Gift-tax Act could be issued only on a bona fide belief, based on relevant material, that a taxable gift had escaped assessment. Here, the share transfers had already been examined in connected income-tax proceedings and were found to arise from a subsisting, enforceable arrangement under which the respondent was bound to transfer the shares at issue price. As the transfer was not without consideration, the later gift-tax notice rested on a contrary subjective view rather than jurisdictional satisfaction. The preconditions for reopening were therefore not met, and the notice was invalid. en-us Fri, 23 May 1986 00:00:00 +0530 Tue, 02 Feb 2010 17:55:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26105 A notice under section 16(1) of the Gift-tax Act could be issued only on a bona fide belief, based on relevant material, that a taxable gift had escaped assessment. Here, the share transfers had already been examined in connected income-tax proceedings and were found to arise from a subsisting, enforceable arrangement under which the respondent was bound to transfer the shares at issue price. As the transfer was not without consideration, the later gift-tax notice rested on a contrary subjective view rather than jurisdictional satisfaction. The preconditions for reopening were therefore not met, and the notice was invalid. Case-Laws Income Tax Fri, 23 May 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26105