https://www.taxtmi.com/caselaws?id=57856 A transfer made under a trust deed in exercise of a pre-existing right of purchase was examined for deemed gift treatment under the Gift-tax Act. Section 4(1)(b) was held inapplicable because the stipulated consideration did pass from transferee to transferor. For section 4(1)(a), adequacy of consideration had to be assessed in a broad, common-sense manner, and the existence of a binding obligation under the trust deed was relevant to that assessment. The market value being higher did not by itself make the consideration inadequate, and voluntariness was not to be imported into the deemed-gift provision. On those facts, no deemed gift arose. en-us Tue, 21 Oct 1986 00:00:00 +0530 Wed, 15 Dec 2010 10:18:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57856 A transfer made under a trust deed in exercise of a pre-existing right of purchase was examined for deemed gift treatment under the Gift-tax Act. Section 4(1)(b) was held inapplicable because the stipulated consideration did pass from transferee to transferor. For section 4(1)(a), adequacy of consideration had to be assessed in a broad, common-sense manner, and the existence of a binding obligation under the trust deed was relevant to that assessment. The market value being higher did not by itself make the consideration inadequate, and voluntariness was not to be imported into the deemed-gift provision. On those facts, no deemed gift arose. Case-Laws Income Tax Tue, 21 Oct 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57856