https://www.taxtmi.com/caselaws?id=36817 Jurisdiction under section 16 of the Gift-tax Act arises where the Gift-tax Officer has reason to believe that a taxable gift has escaped assessment, and that belief is tested by the substance of the recorded reasons and surrounding materials rather than a hypertechnical reading of the notice. The note also explains that a transfer is not automatically a deemed gift under section 4(1)(a) merely because shares are issued at nominal face value; where business liabilities are undertaken and the balance of consideration is reflected through share premium and commercial value, the transfer is not necessarily for inadequate consideration. The Calcutta HC sustained the notice and upheld the revenue's gift-tax case. en-us Thu, 26 Apr 1979 00:00:00 +0530 Tue, 11 Aug 2015 14:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36817 Jurisdiction under section 16 of the Gift-tax Act arises where the Gift-tax Officer has reason to believe that a taxable gift has escaped assessment, and that belief is tested by the substance of the recorded reasons and surrounding materials rather than a hypertechnical reading of the notice. The note also explains that a transfer is not automatically a deemed gift under section 4(1)(a) merely because shares are issued at nominal face value; where business liabilities are undertaken and the balance of consideration is reflected through share premium and commercial value, the transfer is not necessarily for inadequate consideration. The Calcutta HC sustained the notice and upheld the revenue's gift-tax case. Case-Laws Income Tax Thu, 26 Apr 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36817