Reva Investment Pvt. Ltd vs Commissioner Of Gift Tax, Gujarat Ii

The Supreme Court addressed the interpretation of the Gift Tax Act, 1958, specifically Section 26(1), in the context of a transaction involving the transfer of jewellery by an assessee to its wholly owned subsidiary companies. The Court upheld the Gujarat High Court's ruling that the difference of Rs. 8,21,950/- constituted a deemed gift, as the market value of the jewellery exceeded the face value of the shares received. The Court affirmed the liability of the assessee to pay gift tax on this amount, thereby rejecting the assessee's appeal.