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TMI Blog1985 (5) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... randum of agreement, the assessee surrendered his rights as co-owner in the properties at Malcha Marg and Rajinder Nagar, New Delhi. According to the assessee, the family settlement arrived at between the various co-owners was bona fide one and as such it was not correct to say that the provisions of section 4(1)(c) of the Gift-tax Act, 1958 ('the Act') are attracted. The GTO was not satisfied with the said explanation. According to him, the assessee had surrendered his share of properties in question and as such provisions of section 4(1)(c) are attracted. The value of the deemed gift was estimated at Rs. 6,28,050. After giving statutory exemption of Rs. 5,000 the value of the deemed gift was determined at Rs. 6,23,050. 2. The learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... members and offspring of late Sajjan Singh in a bona fide manner. After the settlement he shifted to Patiala to stay with his three sons. Subsequently, this settlement was reduced into writing in the shape of memorandum of agreement on 7-7-1979. According to the counsel, the gift-tax authorities have wrongly invoked the provisions of section 4(1)(c) and held that the value of the assessee's interest in the two properties surrendered by him was a deemed gift to be brought to tax in his hands. Reliance was placed on the ratio of decisions in the cases of Ziauddin Ahmed v. CGT [1976] 102 ITR 253 (Gauhati). 4. The departmental representative supported the order of the Commissioner (Appeals). According to him, the settlement took place on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hi 3. 154, Golf Links, Hari Singh 100 per cent New Delhi 4. C-552, Defence Colony, a. Smt. Shakuntala 50 per cent New Delhi b. Manmohan Singh 40 per cent c. Brij Nandan Singh 10 per cent That Santokh Singh abandoned all his shares and interest in the properties, 7-B, Rajindra Park, New Delhi, and 130, Malcha Marg, New Delhi. " In the affidavit it was also stated that Santokh Singh abandoned all his shares in the property No. 7-B, Rajindra Park, New Delhi, and 130, Malcha Marg, New Delhi. To the same effect are the affidavits filed by the co-owners. Even in the memorandum of agreement dated 7-7-1979 these facts were clearly stated. The GTO or the Commissioner (Appeals) never brought on record any material to show that the affidavit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s bonafide and genuine. 8. In the decision in the case of Ram Charan Das v. Girja Nandini Devi AIR 1966 SC 323, the Supreme Court observed as under : "...Courts give effect to a family settlement upon the broad and general ground that its object is to settle existing or future disputes regarding property amongst members of a family. The word 'family' in the context is not to be understood in a narrow sense of being a group of persons who are recognised in law as having a right of succession or having a claim to a share in the property in dispute. . . ." In the decision in Smt. Mt. Hiran Bibi v. Mt. Sohan Bibi AIR 1914 PC 44, it was pointed out that in a family settlement each party takes a share in the property by virtue of the indepe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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