https://www.taxtmi.com/caselaws?id=57599 A deemed gift under section 4(1)(a) of the Gift-tax Act, 1958 arises only where an existing right or property is transferred, released, surrendered or otherwise parted with for inadequate consideration. On the facts, the deposits and outstanding amounts arose from a commercial trade arrangement, and there was no contractual obligation or enforceable right to charge interest. In the absence of a subsisting right to interest, notional interest could not be imputed as property transferred for inadequate consideration. The non-charging of interest on the sister concern's trade balance therefore did not constitute a deemed gift and was not chargeable to gift-tax. en-us Mon, 30 Apr 2001 00:00:00 +0530 Sat, 11 Dec 2010 10:35:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57599 A deemed gift under section 4(1)(a) of the Gift-tax Act, 1958 arises only where an existing right or property is transferred, released, surrendered or otherwise parted with for inadequate consideration. On the facts, the deposits and outstanding amounts arose from a commercial trade arrangement, and there was no contractual obligation or enforceable right to charge interest. In the absence of a subsisting right to interest, notional interest could not be imputed as property transferred for inadequate consideration. The non-charging of interest on the sister concern's trade balance therefore did not constitute a deemed gift and was not chargeable to gift-tax. Case-Laws Income Tax Mon, 30 Apr 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57599