Applicability of Sec.269C of Income Tax Act & 4(1)(a) of Gift Tax,1958.

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..... ose under section 4(1)(a) of the Gift-tax Act, 1958 should be initiated simultaneously in each and every case has been reconsidered by the Board in consultation with the Ministry of Law. 3. It has been advised that for acquisition u/s.269 C of the I.T.Act, the basis is that the consideration has been under stated in the instrument of transfer with a view to evading the tax liability. The provisio .....

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..... property under reference is still higher, say 'C'. In a case where there is evidence to show that 'B' is more than 'A' proceedings u/s 269C can be initiated. At the same time under section 4(1)(a) of the Gift-tax Act, gift-tax will also be leviable on the difference between 'C' and 'B'. 6. Consequently Board's earlier instruction No. 1558 dated 21st May, 1984 referred to in para (1) above is here .....

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