1970 (5) TMI 27 - SC - Income Tax

Whether, on the facts and in the circumstances of the case, the provisions of the Gift-tax Act are attracted in respect of the sum of ₹ 70,000 thrown into the hotchpotch of the assessee s joint family by the assessee ? Held that - Since the donor happened to be a member of the Hindu undivided family to which the gift in question had been made, the gift to the extent of the donor s share in the said amount was exempt, he brought to tax the balance of amount under the provisions of the Gift-tax Act

Summary

The Supreme Court ruled that the provisions of the Gift-tax Act are not attracted to a sum of Rs. 70,000 thrown into the assessee's joint family. The court considered it not a "gift" as defined in the Act. The assessment year in question was 1964-65, and the relevant accounting period ended on March 31, 1964. The court made no order as to costs in this reference.