https://www.taxtmi.com/caselaws?id=57595 Gift-tax applies only where there is a transfer of existing property without adequate consideration; allotment of right shares against payment of face value was treated as a contractual issue of newly created shares, so it did not amount to a gift or deemed gift. Bonus shares were likewise held not to involve a transfer of existing property under the Gift-tax Act, and a bare allegation of colourable device, unsupported by tangible evidence, could not sustain tax liability. On both issues, the gift-tax levy on the share allotments was deleted. en-us Mon, 12 Feb 2001 00:00:00 +0530 Sat, 11 Dec 2010 10:12:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57595 Gift-tax applies only where there is a transfer of existing property without adequate consideration; allotment of right shares against payment of face value was treated as a contractual issue of newly created shares, so it did not amount to a gift or deemed gift. Bonus shares were likewise held not to involve a transfer of existing property under the Gift-tax Act, and a bare allegation of colourable device, unsupported by tangible evidence, could not sustain tax liability. On both issues, the gift-tax levy on the share allotments was deleted. Case-Laws Income Tax Mon, 12 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57595