53. For the purposes of this Chapter -
| (a) where any property is transferred and an Assessor, having regard to the circumstances of the case, is of the opinion that the transfer is for a consideration which is not adequate, and the parties to the transfer, upon being requested in writing by the Assessor to show cause against such opinion within the time specified in the request do not show cause within that time or do not show such cause as is considered by the Assessor to be sufficient, the amount by which the market value of that property at the date of the transfer exceeds the value of the consideration shall be deemed to be a gift made by the transfer or to the transferee; |
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| (b) where any property is transferred and an Assessor, having regard to the circumstances of the case, is of the opinion that the consideration for the transfer has not passed or is not intended to pass either in full or in part from the transferee to the transferor and the parties to the transfer upon being requested in writing by the Assessor to show cause against such opinion within the time specified in the request, do not show cause within that time or do not show such cause as is considered by the Assessor to be sufficient, the amount of the consideration which, in the opinion of the Assessor, has not passed or is not intended to pass shall be deemed to be a gift made by the transferor; |
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| (c) where a person absolutely entitled to any property causes or has caused that property 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 that property, the amount of the appropriation used for the benefit of any person other than the vestor shall be deemed to be a gift made to the person making the appropriation by the vestor; |
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| (d) where there is a release, discharge, surrender or abandonment of any debt (other than a debt which is treated as a bad debt and is allowed as a deduction for the purposes of ascertaining profits or income under this Act) or contract or any interest in any property by any person, the value of the release, discharge, surrender or abandonment shall be deemed to be a gift made by him ; |
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| (e) the gift of any property subject to a reservation in favour of the donor or any other person shall be deemed to take effect when it is made and not when the interest created by the reservation is extinguished. |
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Sri Lanka Consolidated Acts