Section 3. Special provision for quoted shares of companies

3. The words "not involving the carrying on of any activity for profit" omitted by Act 67 of 1984, s. 71 (w.e.f. 1-4-1984). 4. Clause (vi) omitted by Act 4 of 1988, s. 162 (w.e.f. 1-4-1988). 5. Clause (via) omitted by s. 162, ibid . (w.e.f. 1-4-1988). 6. Subs. by s. 162, ibid ., for clause (vii) (w.e.f. 1-4-1988). 7. Clause (viia) omitted by s. 162, ibid . (w.e.f. 1-4-1988). 8. Subs. by s. 162, ibid ., for clause (xi) (w.e.f. 1-4-1989). 3. Special provision for quoted shares of companies. — Notwithstanding anything in rule 2, the value of an equity share in any company which is a quoted share may, at the option of the assessee or a company, be taken on the basis of the average of the value quoted on the 31st day of March immediately preceding the assessment year and the values quoted in respect of such share on the said dates in relation to each of the immediately preceding nine assessment years, or where there is no such quotation on any of the aforesaid dates, the quotation on the date closest to the said date and immediately preceding such date : the aforesaid dates, the quotation on the date closest to the said date and immediately preceding such Provided that where for any reason the value of such share is quoted in relation to lesser number of assessment years than the said nine assessment years, then the value or values so quoted shall be taken into account for the purposes of the aforesaid average: 1. Ins. by Act 3 of 1989, s. 94 (w.e.f. 1-4-1989). 2. Subs. by Act 38 of 1993, s. 42, for "The value of property" (w.e.f. 1-4-1993). 3. Subs. by s. 42, ibid ., for "the Wealth-tax Act" (w.e.f. 1-4-1993). 4. Ins. by s. 42, ibid , (w.e.f. 1-4-1993). Provided further that where the assessee opts for the average of the values so quoted, he shall get such values certified by an accountant and attach the certificate to the return of gifts in respect of the relevant assessment year. Explanation. —For the purposes of this rule, "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288 of the Income-tax Act. (b) where property is transferred for a consideration which, having regard to the circumstances of the case, has not passed or is not intended to pass either in full or in part from the transferee to the transferor, the amount of the consideration which has not passed or is not intended to pass shall be deemed to be a gift made by the transferor; (c) where there is a release, discharge, surrender, forfeiture or abandonment of any debt, contract or other actionable claim or of any interest in property by any person, the value of the release, discharge, surrender, forfeiture or abandonment to the extent to which it has not been found to the satisfaction of the[8] [Assessing Officer] to have been bona fide, shall be deemed to be a gift made by the person responsible for the release, discharge, surrender, forfeiture or abandonment; (d) where a person absolutely entitled to property causes or has caused the same to be vested in whatever manner in himself and any other person jointly without adequate consideration and such other person makes an appropriation from or out of the said property, the amount of the appropriation used for the benefit of the person making the appropriation or for the benefit of any other person shall be deemed to be a gift made in his favour by the person who causes or has caused the property to be so vested; 9 [(e) where a person who has an interest in property as a tenant for a term or for life or a remainderman surrenders or relinquishes his interest in the property or otherwise allows his interest to be terminated without consideration or for a consideration which is not adequate, the value of the interest so surrendered, relinquished or allowed to be terminated or, as the case may be, the amount 1. Subs. by Act 3 of 1989, s. 79, for "the Schedule" (w.e.f. 1-4-1989). 2. Ins. by Act 23 of 1986, s. 41 (w.e.f. 1-4-1989). 3. Subs. by Act 4 of 1988, s. 163, for "Subject to the other provisions contained in this Act" (w.e.f. 1-4-1989). 4. Ins. by Act 21 of 1998, s. 75 (w.e.f. 1-1-1998). 5. Section 4 renumbered as sub-section (1) thereof by Act 32 of 1971, s. 37 (w.e.f. 1-4-1972). 6. Subs. by Act 49 of 1991, s. 84, for "market value of the property at the date of the transfer" (w.e.f. 1-4-1992). 7. The Proviso ins. by Act 25 of 1975, s. 29 (w.e.f. 1-4-1974). 8. Subs. by Act 4 of 1988, s. 161, for "Gift-tax officer" (w.e.f. 1-4-1988). 9. Ins. by Act 44 of 1980, s. 42 (w.e.f. 1-4-1980). by which such value exceeds the consideration received, shall be deemed to be a gift made by such person.] 1[(2) Where, in the case of an individual being a member of a Hindu undivided family, any property having been the separate property of the individual has been converted by the individual into property belonging to the family through the act of impressing such separate property with the character of property belonging to the family or throwing it into the common stock of the family (such property being hereafter in this sub-section referred to as the converted property), then, notwithstanding anything contained in any other provision of this Act or any other law for the time being in force, for the purpose of computation of the taxable gifts made by the individual, the individual shall be deemed to have made a gift of so much of the converted property as the members of the Hindu undivided family other than such individual would be entitled to, if a partition of the converted property had taken place immediately after such conversion.]