1984 (12) TMI 107

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....ft of Rs. 5,87,500. Later on, he led a revised return declaring a nil gift. However, the GTO treated the transfer as a gift and assessed the assessee accordingly. 3. In appeal, the learned Commissioner (Appeals) held that there was no adequate consideration measurable in terms of money's worth. He did not accept the contention raised on behalf of the assessee that there was a marriage agreement or ante-nuptial agreement and that the transfer of shares was by way of consideration of the promise by the lady to marry the assessee. 4. The assessee, being aggrieved, has come up in appeal before us. Shri K. Annadhanam, the learned counsel for the assessee, submitted that the transfer of shares made by virtue of pre-nuptial agreement was not....

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....ct. In the case of Tulsidas Kilachand, it was held by the Supreme Court that though natural love and affection or even a promise to marry may be good consideration for a contract, but it cannot be regarded as an adequate consideration. So far as the meaning of the expression 'adequate consideration' is concerned, it was, held by the Andhra Pradesh High Court in the case of Potti Veerayya Sresty that the consideration that supports the transfer should be one, the value of which can be measured in terms of money or money's worth. To the same effect, meaning has been assigned to the expression 'adequate consideration' by the Andhra Pradesh High Court in the case of Khan Saheb Dost Mohd. Alladin. No decision was pointed out on behalf of the ass....

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....interpretation put by the Calcutta High Court on the expression 'adequate consideration'. Section 2(xii) defines a gift as meaning the transfer by one person to another of any existing movable or immovable property made voluntarily and without consideration in money or money's worth, and includes the transfer or conversion of any property referred to in section 4 of the Act deemed to be a gift under that section. The word 'voluntarily' here means 'willingly without compulsion', unfettered by influence or intercession, misrepresentation or coercion, force or fraud. We have already seen that the said transfer of shares was without consideration in money or money's worth, since it was made for the marriage between the assessee and Miss Gayatri....