https://www.taxtmi.com/caselaws?id=55697 Transfers of textile factory properties for the declared consideration were held not to constitute a deemed gift under section 4(1)(a) of the Gift-tax Act. The phrase "inadequate consideration" does not mean every sale below market value is automatically taxable as a gift; the statutory focus is whether the transfer was truly lacking adequate consideration and whether it reflects an artificial device or element of bounty. On the facts, financial distress, bank pressure, recession in the textile market, and a compelled sale to unrelated purchasers supported bona fide transactions. There was no material of understatement or intent to confer benefit, and the consideration had been accepted in income-tax proceedings, so the deemed gift additions were unsustainable. en-us Mon, 25 Mar 1996 00:00:00 +0530 Mon, 29 Nov 2010 15:06:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55697 Transfers of textile factory properties for the declared consideration were held not to constitute a deemed gift under section 4(1)(a) of the Gift-tax Act. The phrase "inadequate consideration" does not mean every sale below market value is automatically taxable as a gift; the statutory focus is whether the transfer was truly lacking adequate consideration and whether it reflects an artificial device or element of bounty. On the facts, financial distress, bank pressure, recession in the textile market, and a compelled sale to unrelated purchasers supported bona fide transactions. There was no material of understatement or intent to confer benefit, and the consideration had been accepted in income-tax proceedings, so the deemed gift additions were unsustainable. Case-Laws Income Tax Mon, 25 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55697