1996 (3) TMI 63 - HC - Income Tax

Summary

The High Court of Madhya Pradesh ruled in favor of the assessee in a Gift-tax Act case involving a gift made by the karta of a Hindu undivided family to his wife. The court held that the gift was entitled to exemption under section 5(1)(viii) of the Act as the karta was competent to gift the property to his wife for love and affection, with no prohibition under Hindu law. The Tribunal's decision was upheld, and the reference was answered in favor of the assessee and against the Revenue.