https://www.taxtmi.com/caselaws?id=59156 A transfer by a company to a group of shareholders was analysed under gift-tax principles and treated as taxable where it was voluntary, without adequate consideration, and not shown to be a genuine family arrangement. The commentary explains that a family arrangement requires a real family dispute or settlement concerning family property, which was absent because the dispute related to company affairs and the company was a separate legal entity. It also notes that exemption under section 5(1)(xiv) applies only to bona fide business gifts made for commercial expediency, and that shareholder benefit does not by itself amount to company business benefit. The transaction therefore remained within the gift-tax net. en-us Fri, 30 Oct 1992 00:00:00 +0530 Sat, 25 Dec 2010 12:59:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59156 A transfer by a company to a group of shareholders was analysed under gift-tax principles and treated as taxable where it was voluntary, without adequate consideration, and not shown to be a genuine family arrangement. The commentary explains that a family arrangement requires a real family dispute or settlement concerning family property, which was absent because the dispute related to company affairs and the company was a separate legal entity. It also notes that exemption under section 5(1)(xiv) applies only to bona fide business gifts made for commercial expediency, and that shareholder benefit does not by itself amount to company business benefit. The transaction therefore remained within the gift-tax net. Case-Laws Income Tax Fri, 30 Oct 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59156