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TMI Blog2000 (2) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... he act of relinquishment of the assessee." 3. The assessee is an individual. Her case is that she relinquished her interest in HUF property by an oral partition for distributing equally between her two sons. The GTO treated the act of relinquishment of income by the assessee as gift. The assessee's contention was that the relinquishment of rights in property was a unilateral act which was not accepted by the GTO who completed gift tax assessment determining the taxable gift at Rs. 41,644 after allowing exemption for Rs. 5000 under section 5(1)(ii). Aggrieved by the order, the assessee went in appeal before the first appellate authority. it was submitted on behalf of the assessee before him that to make a gift complete there has to be accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he transfer or conversion of any property referred to in section 4, deemed to be a gift under that section)." Thus, the word gift means the transfer of existing property both movable and immovable by one person to another made voluntarily without consideration and it also takes care of certain other transactions which may not be directly covered by the operative part of the definition in section 2(xii) and seeks to exclude transfer within the meaning of Section 4 which contemplates deemed gift for the purpose of the Act. Our attention was also invited to Section 2(xxiv) of the Gift-tax Act wherein transfer of property is defined as :--- "(xxiv) "transfer of property" means any disposition, conveyance, assignment, settlement, delivery, pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Prakash Chandra and any other male child or male children that may be born to my present wife S. Padam Jain absolutely and in equal shares." Our attention was also drawn to a copy of the Decree in a Suit for Declaration before the High Court of Delhi wherein at page no. 4 it is mentioned as under:--- "Defendant No. 1 had orally relinquished her interest in the HUF property bearing no. 47, Bungalow Road, Kamla Nagar, Subzimandi, Delhi-7 in favour of plaintiff and defendant no. 2 vide the plaintiff and defendant no. 2 vide an oral partition had divided the said property as aforementioned. It is ordered that a decree for declaration be and is hereby passed in the following manner;" 6. The counsel for the assessee vehemently argued that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of a HUF. It was further argued by him that the satisfaction of the GTO was required where the transaction was held to be bona fide. The present case is an act of transfer without consideration, hence not bona fide and he sought to distinguish Anusuya Sarabhai and it was not applicable to the present case. 8. After hearing the rival submissions and going through the record as well as the case law cited, we are of the considered opinion that the ground raised by the assessee is liable to be accepted. The assessee has relied upon Gujarat High Court decision which squarely covers the present case. Facts in the relevant case were as under:--- "The assessee, A, was the sister of the late, S. S had crated a trust in 1949, whereby he had trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rabhai's case wherein it was held that :--- "the Tribunal and also the High Court found that the assessee, A had surrendered or released her life interest in the portion of the property and it enabled the releasees who were the beneficiaries to resume possession of the entire corpus of the property a little earlier. In other words the interest of the beneficiaries in that portion of the property was accelerated. The transaction was held to be bona fide. It was a unilateral act. In such circumstances there was no transaction exigible to tax within the meaning of the Gift-tax Act." 9. On perusing the impugned order, we find that the learned DCIT(A) held as under: "... In this case, the appellant has surrendered her right in the property un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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