The assessee gifted listed shares without consideration. Return was processed u/s 143(1). AO issued notice u/s 148 alleging escapement of capital gains. On writ, the High Court held that transfer by way of gift is covered u/s 47(iii), hence excluded from capital gains under s. 45. Since no consideration passed, ss. 50CA and 50D were inapplicable. The reassessment notice lacked tangible material and was quashed.(AY. 2010-11)