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Validity of gift based on book entries Transfer of an actionable claim through book entries Validity of gift based on book entries: The case involved a dispute regarding the validity of a gift made by the assessee to his grandsons, as reflected in the book entries transferring a sum of money. The Appellate Assistant Commissioner and the Tribunal held that the entries in the account books were not sufficient evidence to establish a valid gift. The Tribunal specifically noted that the entries were not made in the regular course of business, casting doubt on their reliability. The Tribunal rejected the contention that a valid gift was made by the assessee to his grandsons based on these entries. Transfer of an actionable claim through book entries: Another issue in the case was whether the transfer of the amount from the assessee's account to his grandsons' accounts constituted a transfer of an actionable claim. The Tribunal agreed with the Appellate Assistant Commissioner that the amount owed by the partnership to the assessee was a debt and, therefore, an actionable claim. It was argued that the transfer could have been effected through a tripartite agreement, but the court found no evidence to support this claim. The court held that without a proper deed as required by the Transfer of Property Act, no valid transfer of the amounts had taken place. Conclusion: The court answered both questions in the negative, stating that the book entries did not constitute a valid gift and that the transfer of the amount to the grandsons amounted to a transfer of an actionable claim, which required a proper deed for validity. The court rejected the arguments presented by the assessee's counsel and upheld the decisions of the lower authorities. The assessee was directed to pay the costs of the department, and no further orders were issued.
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