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Issues Involved:
The judgment involves the interpretation of transfer of shares under a family arrangement and the adequacy of consideration for such transfer under Section 4(1) of the Gift Act. Interpretation of Transfer of Shares: The judgment discusses the definition of 'transfer' under the Act, highlighting that it does not include partition or family settlement. It emphasizes that a partition is not considered a transfer, and what is recorded in a family settlement is akin to a partition. The judgment clarifies that in a family arrangement, there is an adjustment of shares and crystallization of rights in family properties, which does not amount to a transfer in the eyes of the law. Therefore, the Tribunal was justified in holding that there is no deemed gift as per Section 4 of the Gift Act. Adequacy of Consideration: The judgment addresses the issue of whether the consideration mentioned in the family settlement is less than the market price. It asserts that since the transaction does not qualify as a transfer, the question of whether the consideration is adequate or not does not arise. Consequently, the Tribunal's decision that there is no deemed gift under Section 4 of the Gift Act is upheld. The judgment concludes that no substantial question of law arises for consideration, affirming the validity and legality of the Tribunal's order, leading to the rejection of both appeals.
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