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TMI Blog1984 (2) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 50,000 at the time of their marriage on 18-2-1949. This was accepted and 50 per cent of income alone was considered in the assessee's hands. The assessee thereafter made an oral release of interest in this property towards the balance of meher payable at Rs. 25,000. This was also reduced to writing in an affidavit, dated 23-6-1974. The formal deed of release was executed on 14-1-1976 and registered on 25-2-1976. It was the assessee's case that the assessee had ceased to have any interest in the property thereafter. The ITO, however, valued the half interest released at Rs. 60,000. He accepted the consideration of balance of meher at Rs. 25,000. He, therefore, took the view that the balance of Rs. 35,000 (the difference between Rs. 60,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stage though the learned counsel for the assessee argues that on facts it is a case of prompt dower and that is why it was accepted by the authorities on both times. We cannot go into the new case sought to be canvassed before us as the facts already on record do not provide the factual foundation for such a claim. The appeal itself is misconceived because the order of the first appellate authority is more favourable to the revenue than the order of the ITO. We will, however, consider the ITO's action on merits in relation to the cross-objection which also is on the same question. 4. As for the cross-objection, it repeats the claim before the ITO that no part of the income from property is includible in the assessee's hands. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of such inadequacy. If the ITO could invoke section 64 to the extent of such inadequacy even as pointed out by the Madras High Court in the case of Smt. V. Amirthan Ammal v. CIT [ 1976] 102 ITR 350, the inadequacy should be such on facts as to warrant the application of section 64. The Bombay High Court in CGT v. Cawasji Jehangir Co. (P.) Ltd. [1977] 106 ITR 390 held that though the market value of shares on the date of actual reduction of share capital as per the Court's order (the date of transfer) was more, the consideration could be taken as per date of resolution. In this context it observed as under in Cawasji Jehangir Co. (P.) Ltd.'s case : ". . . In my opinion, the expression 'adequate consideration' has to be construed in a bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration, the provision would have been differently worded. The wording would then have been, ' where the property is transferred for less than its market value, then the difference between the market value and the consideration stipulated, shall be deemed to be the gift made by the transferor '. Parliament not having made any such provision, it would not before us to take the market value of the property for determining the adequacy of consideration in all events." Though the above observation was made in the context of the words adequate consideration' under section 4(1) of the Gift-tax Act, 1958 ('the 1958 Act') the interpretation should exactly apply for the Act as well since the Act also does not give any specific power to the ITO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Holdings Act, 1961, had dealt with the meaning assigned to the words 'consideration', 'adequate consideration', etc., under the Transfer of Property Act, 1882, and the Indian Contract Act, 1872. It quoted with approval the definition of 'consideration' in Black's Law Dictionary which defines 'consideration' as under : "Consideration is not to be confounded with motive, consideration means something which is of value in the eye of the law, moving from the plaintiff, either of benefit to the plaintiff or of detriment to the defendant." The word 'adequate', it was noticed, was defined in Webster's Dictionary as 'legally sufficient' such as is lawfully and reasonably sufficient. A definition of the phrase 'adequate consideration' in Words ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpose of making a gift with the consideration which is the subject-matter of the gift. Love, affection, spiritual benefit and many other factors may enter in the intention of the donor to make a gift but these filial considerations cannot be called or held to, be legal considerations as understood by law. It is manifest, therefore, that the passing of monetary consideration is completely foreign to the concept of a gift having regard to the nature, character and the circumstances under which such a transfer takes place. Though the above extract from the Supreme Court decision was in relation to a different issue, it is clear that the position of law as noticed by us earlier has its support. Consideration is adequate where it is 'sufficien ..... X X X X Extracts X X X X X X X X Extracts X X X X
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