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2013 (6) TMI 18 - HC - Income TaxValidity of proceedings initiated u/s 16 of the Gift Tax Act, 1958 - reopening of assessment - addition on account of deemed gift deleted by Tribunal by holding that the transfer of property was made for adequate consideration - Held that:- The fact that the property that is transferred has to be other than cash is borne out by computation provision in the latter part of the said clause. The computation provision contemplates that the property that is transferred must be capable of being valued in the manner laid down in Schedule II of the Act. A perusal of Rule 1 of Schedule II further makes it clear that the said Schedule prescribed the methodology for determining the value of properties other than cash. A fortiori, property referred to in the opening words of Section 4 (1) (a), is capable of being evaluated in terms of Schedule II and hence, as the subject matter of the alleged transfer in the present case is cash, section 4 (1) (a) can have no application whatsoever. In view of the legal proposition laid down in Reva Investment Pvt. Ltd. versus CGT [2001 (5) TMI 49 - SUPREME Court], CGT versus Indo Traders & Agencies (Madras) Pvt. Ltd. [1979 (6) TMI 8 - MADRAS High Court] and CGT v. A. Hafsa Banu [1998 (9) TMI 31 - MADRAS High Court], it is imminently clear beyond doubt that the burden lies on the revenue to establish that the conditions of Section 4 (1) (a) are complied with. In favour of assessee.
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