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Validity of gift tax assessment on transfer of ancestral land by a Jat Sikh father to his sons without consideration. Analysis: The judgment revolves around the issue of whether a Jat Sikh father can make a valid gift of ancestral property to his sons without consideration, thereby subjecting it to gift tax. The Gift-tax Officer treated the transfer of agricultural land by the father to his sons as a gift under the Gift-tax Act, 1958, as it was without consideration. The father argued that as per Hindu law, no valid gift can be made of ancestral property to a son, rendering the gift void and not subject to gift tax. The Appellate Assistant Commissioner accepted this argument, citing precedents that established a Jat Sikh as a Hindu for legal purposes and the restrictions on a karta's ability to gift ancestral property to a coparcener. The judgment references the case law of Pritam Singh v. Asst. CED [1976] 103 ITR 661 (P & H) [FB], which established that a Jat Sikh can form a joint Hindu family and that a karta cannot validly gift ancestral property to a coparcener. It further discusses the legal principle that a coparcener becomes the owner of ancestral property by birth, and a karta does not have absolute ownership rights over the property. The judgment also cites the case of Tej Nath [1972] 86 ITR 96, where it was held that a father cannot gift coparcenary property to his minor sons, as it would be void under Hindu law. Ultimately, the court concludes that the gift made by the father to his sons of ancestral property was void per se under Hindu law, and therefore, it did not constitute a valid gift for the purposes of the Gift-tax Act. The Tribunal's decision to cancel the assessment order passed by the Gift-tax Officer against the assessee was upheld, affirming the Appellate Assistant Commissioner's ruling. The judgment answers the referred question in favor of the assessee and against the Revenue, with no costs awarded.
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