1990 (7) TMI 90 - HC - Income Tax

Summary

The High Court of Bombay dismissed an application under section 26(3) of the Gift-tax Act, 1958, regarding the valuation of shares issued to partners of a firm taken over by a company. The court held that no deemed gift was involved and no gift-tax was chargeable, agreeing with the Income-tax Appellate Tribunal's decision that the shares encompassed all the assets of the company and profits were embedded in the transferred assets. The application was dismissed with no costs awarded.