https://www.taxtmi.com/caselaws?id=60942 A bona fide purchase of redeemable non-cumulative preference shares at face value was not treated as a deemed gift under section 4(1)(a) of the Gift-tax Act, 1958. The department failed to prove inadequacy of consideration on independent, reliable material; low yield, higher borrowing cost, and related group transactions were insufficient to fix a lower market value. The proviso to section 4(1)(a) was also held inapplicable because approval of the memorandum of association was not approval of the consideration for the specific transfer. The gift-tax assessments were therefore unsustainable. en-us Wed, 28 Oct 1998 00:00:00 +0530 Sat, 08 Jan 2011 17:11:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60942 A bona fide purchase of redeemable non-cumulative preference shares at face value was not treated as a deemed gift under section 4(1)(a) of the Gift-tax Act, 1958. The department failed to prove inadequacy of consideration on independent, reliable material; low yield, higher borrowing cost, and related group transactions were insufficient to fix a lower market value. The proviso to section 4(1)(a) was also held inapplicable because approval of the memorandum of association was not approval of the consideration for the specific transfer. The gift-tax assessments were therefore unsustainable. Case-Laws Income Tax Wed, 28 Oct 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60942