1980 (4) TMI 87

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....considerable loans from his group companies, the interest ranging from 6 per cent. to 7 per cent. The assessee company lent those amounts to Karumuttu Thiagarajan Chettiar and his wife charging interest at half per cent. The GTO came to the conclusion that the assessee-company should have charged interest on the loans advanced by it to Karumuttu Thiagarajan Chettiar, his wife and sons at least at the rate of 6 per cent. and not having done so the difference in the interest at the rate of 5 1/2% should be taken as having been gifted to those persons by the assessee-company. The GTO concluded that such gifts amounted to Rs. 1,58,929 for the assessment year 1962-63 and Rs. 2,65,945 for the assessment year 1963-64 and levied a gift-tax of Rs. 8....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at which the assessee has borrowed moneys would not constitute a 'transfer of property' within the meaning of the Gift-tax Act, 1958 ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee had not forgone or given up anything in the transaction involved ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that there was no deemed gift within the extended meaning of sections 2(xxiv), 4(a) and 4(c) of the Gift-tax Act, 1958 ? " The learned counsel for the revenue relying on the definition of transfer of property under s. 2(xxiv) of the G.T. Act and also the definition of " property under s. 2(xxii) of the G.T....