1997 (2) TMI 54 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee in a gift-tax case for the assessment years 1970-71 and 1971-72. The court held that the transfer was not without adequate consideration, and therefore, the assessee is not liable to gift-tax under section 4(1)(a) of the Gift-tax Act, 1958. The court emphasized that unless the price was shocking, it cannot be considered inadequate consideration. The decision was against the Department, with no costs awarded.