2001 (12) TMI 13 - HC - Income Tax

The Commissioner has rightly stated that a broad view should be taken while deciding the question as to whether the gift is a deemed gift. It is only in cases where the difference in price is abnormal, the conclusion that the vendor has consciously given away to the buyer a valuable thing at a much lesser value only to favour the buyer can be reached, and the question of deemed gift would arise.

Summary

The High Court of Madras dismissed the appeal, stating that a broad view should be taken to determine if a gift is deemed. The conclusion of a deemed gift arises only when the vendor consciously sells a valuable thing at a much lesser value to favor the buyer.