https://www.taxtmi.com/caselaws?id=56072 A compromise settlement involving waiver of a co-operative housing society's claim was not a taxable gift or deemed gift by the assessee-company. The release of liability formed part of a genuine dispute settlement, with consideration moving under the broader compromise, so it could not be treated as absent merely because it was indirect or routed through a third party. The statutory deeming rule under section 4(1)(c) of the Gift-tax Act applied only where the discharge was not bona fide to the satisfaction of the Gift-tax Officer, and the society, as a separate entity, was the one empowered to release its own claim. The addition was therefore unsustainable. en-us Wed, 20 Jul 1988 00:00:00 +0530 Wed, 01 Dec 2010 14:43:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56072 A compromise settlement involving waiver of a co-operative housing society's claim was not a taxable gift or deemed gift by the assessee-company. The release of liability formed part of a genuine dispute settlement, with consideration moving under the broader compromise, so it could not be treated as absent merely because it was indirect or routed through a third party. The statutory deeming rule under section 4(1)(c) of the Gift-tax Act applied only where the discharge was not bona fide to the satisfaction of the Gift-tax Officer, and the society, as a separate entity, was the one empowered to release its own claim. The addition was therefore unsustainable. Case-Laws Income Tax Wed, 20 Jul 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56072