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TMI Blog1985 (5) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 provisions of s. 4(1)(c) 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 a such provision of s. 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. 6,24,050. 2. The ld. CIT(A) was of the view that there was no bona fide settlement. According to him the whole transaction was sham. Thus the ld. CIT(A) agreed with the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement on7th July, 1979. According to the counsel the gift tax Authorities have wrongly invoked the provisions of s. 4 (1)(c) of the GT Act and held that 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 Zianddin Ahmed vs. CGT 1976 CTR (Gau) 161 : (1976) 102 ITR 253 (Gau). 4. The Departmental Representative supported the order of the CIT(A). According to him the settlement took place on the back date. The memorandum of agreement is dt.7th July, 1979but it was made applicable from11th Sept., 1977. It was also contended that it does not stand to reason that in the settlement Santokh Singh would surre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, Defence Colony,New Delhi (a) Smt. Shakuntla 50 per cent . . (b) S. Monmohan Singh 40 per cent . . (c) S. Brij Nandan Singh 10 per cent That S. Santokh Singh abandoned all his shares and interest in the properties, 7-8,RajindraPark,New Delhiand 130, Malcha Marg,New Delhi." In the affidavit it was also stated that Sontokh Singh abandoned all his shares in the property No. 7-8RajindraParkand 130, Malcha Marg,New Delhi. To the same effect are the affidavits filed by the co-owners. Even in the memorandum of agreement dt.7th July, 1979these facts were clearly stated. The GTO or the CIT(A) never brought on record any material to show that the affidavits filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enuine. 8. In the decision in the case of Ram Charan Das AIR 1966 SC 323, the Supreme Court at p. 329 of the report observed as under: "Court gives effect to the 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. Hiran 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 independent title which is admitted to that extent b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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