https://www.taxtmi.com/caselaws?id=40320 An arrangement granting business assets for inadequate consideration could be treated as a deemed gift under the Gift-tax Act to the extent of the excess over market value. For valuation under section 6(2) and rule 11(1), however, the decisive test is the period during which the gift is not revocable in law. Because the agreement was terminable on six months' notice, the gift was not irrevocable for a complete period exceeding one year. The fact that the arrangement continued for several years did not alter the statutory test, and no capitalised value could be computed; the taxable value was nil. en-us Tue, 16 Oct 2001 00:00:00 +0530 Wed, 25 Jun 2014 18:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40320 An arrangement granting business assets for inadequate consideration could be treated as a deemed gift under the Gift-tax Act to the extent of the excess over market value. For valuation under section 6(2) and rule 11(1), however, the decisive test is the period during which the gift is not revocable in law. Because the agreement was terminable on six months' notice, the gift was not irrevocable for a complete period exceeding one year. The fact that the arrangement continued for several years did not alter the statutory test, and no capitalised value could be computed; the taxable value was nil. Case-Laws Income Tax Tue, 16 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40320