https://www.taxtmi.com/caselaws?id=40298 Transfer of jewellery to wholly owned subsidiaries in exchange for fully paid shares was analysed under section 4(1)(a) of the Gift-tax Act, 1958. The governing test is whether property was transferred otherwise than for adequate consideration in commercial reality, not whether the assessing authority values the assets differently. Because the companies' only asset was the jewellery itself and the shares represented the entire capital of those companies, the share consideration and transferred property were inseparable in substance. A mere gap between face value and market value did not, by itself, establish inadequate consideration or trigger the deeming provision. en-us Wed, 02 May 2001 00:00:00 +0530 Thu, 26 Jun 2014 18:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40298 Transfer of jewellery to wholly owned subsidiaries in exchange for fully paid shares was analysed under section 4(1)(a) of the Gift-tax Act, 1958. The governing test is whether property was transferred otherwise than for adequate consideration in commercial reality, not whether the assessing authority values the assets differently. Because the companies' only asset was the jewellery itself and the shares represented the entire capital of those companies, the share consideration and transferred property were inseparable in substance. A mere gap between face value and market value did not, by itself, establish inadequate consideration or trigger the deeming provision. Case-Laws Income Tax Wed, 02 May 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40298