https://www.taxtmi.com/caselaws?id=56205 A compromise of a disputed family claim was not treated as a gift under section 4(1)(c) of the Gift-tax Act, 1958 because the assessee accepted a lesser sum in full discharge of a bona fide claim rather than surrendering a settled property right without consideration. The arrangement followed long-standing disputes, partial payments and mediation by relatives, and the relevant test was the genuineness and value of the claim at the date of settlement, not a later Supreme Court ruling on the mother's liability. On those facts, the compromise was genuine and the discounted value of the claim was said to be below the settlement amount, so no taxable gift arose and the addition was deleted. en-us Thu, 31 Oct 1985 00:00:00 +0530 Thu, 02 Dec 2010 12:56:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56205 A compromise of a disputed family claim was not treated as a gift under section 4(1)(c) of the Gift-tax Act, 1958 because the assessee accepted a lesser sum in full discharge of a bona fide claim rather than surrendering a settled property right without consideration. The arrangement followed long-standing disputes, partial payments and mediation by relatives, and the relevant test was the genuineness and value of the claim at the date of settlement, not a later Supreme Court ruling on the mother's liability. On those facts, the compromise was genuine and the discounted value of the claim was said to be below the settlement amount, so no taxable gift arose and the addition was deleted. Case-Laws Income Tax Thu, 31 Oct 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56205