https://www.taxtmi.com/caselaws?id=38618 A transfer of shares made under a prior binding financing arrangement, and at the agreed par value, was not a transfer without adequate consideration and therefore did not fall within deemed gift treatment under the Gift-tax Act. Because the statutory basis for section 4(1)(a) was absent, there were no reasonable grounds to believe that taxable gift income had escaped assessment. The notice issued for reopening under section 16(1) was accordingly invalid and liable to be quashed in favour of the assessee. en-us Tue, 09 Mar 1976 00:00:00 +0530 Wed, 07 Apr 2010 16:03:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38618 A transfer of shares made under a prior binding financing arrangement, and at the agreed par value, was not a transfer without adequate consideration and therefore did not fall within deemed gift treatment under the Gift-tax Act. Because the statutory basis for section 4(1)(a) was absent, there were no reasonable grounds to believe that taxable gift income had escaped assessment. The notice issued for reopening under section 16(1) was accordingly invalid and liable to be quashed in favour of the assessee. Case-Laws Income Tax Tue, 09 Mar 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38618