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Issues:
1. Validity of gift under Gift-tax assessment for 1976-77. 2. Requirement of delivery of possession for a valid gift under Mahomedan Law. 3. Revocation of gift by the donor. 4. Claim of family arrangement in the gift deed. 5. Valuation of the gifted properties for the purpose of gift-tax assessment. Detailed Analysis: 1. The appeal was against the order confirming the gift-tax assessment for 1976-77 based on a gift deed executed by the assessee in favor of his minor sons. The document evidenced the gift of properties without any monetary consideration, attested and registered. The donor raised objections regarding possession and control over the properties, which were rejected. The first appellate authority also dismissed the appeal, leading to the second appeal by the assessee. 2. The first objection raised was the lack of valid gift due to no delivery of possession. The document indicated the donor's intention to divest himself of all rights in favor of the minor sons. The donor and donees resided together, and possession was given to the guardian of the minors, satisfying the requirement of delivery of possession under Mahomedan Law. 3. The donor's attempt to revoke the gift through another document was deemed invalid as it lacked legal basis. According to Mahomedan Law, a gift can be revoked under specific circumstances, but a unilateral revocation without proper legal grounds is not valid. Only a civil court decree could establish a valid revocation. 4. The argument of the gift being a family arrangement was rejected as the document clearly indicated a gift deed without any indication of a family arrangement. The properties belonged absolutely to the donor, and the minor sons had no prior right or claim over them, reinforcing the nature of the gift. 5. The valuation of the gifted properties for gift-tax assessment was questioned, with discrepancies in the valuation adopted by the Gift-tax Officer compared to the wealth-tax assessment. The tribunal directed the Gift-tax Officer to consider the finally determined valuation in the wealth-tax assessment for reframing the gift-tax assessment if it was lower. In conclusion, the tribunal upheld the validity of the gift deed, emphasizing the effective delivery of possession and rejecting claims of revocation and family arrangement. The valuation issue was addressed by directing the consideration of the wealth-tax assessment valuation for the gift-tax assessment. The appeal was dismissed, subject to the valuation adjustment directed by the tribunal.
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