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TMI Blog1979 (5) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for his daughters:- (1) Smt. Sushila Nilkamal Vanikar (Married) Rs. 5,000 (2) Smt. Usha Vasant Kanda (Marrid) Rs. 5,000 (3) Kumari Asha Gaikwad (Unmarried) Rs. 25,000 (4)Kumari Godawari Gaikwad (Unmarried) Rs. 30,000 (5) Kumari Anjali Gaikwad (Unmarried) 35,000 . Rs. 100,000 3. In response to the GTO's notice under s. 15(2) of the GT Act dt. 16th March, 1971, the assessee HUF filed a return declaring gift as "NIL". The GTO held that payments amounting to Rs. 90,000 made in relevant accounting period were gifts within the meaning of s. (xii) of the GT Act chargeable to tax under s. 3. The GTO observed that amount paid to the married daughter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to his daughters by virtue of the settlement deed dt. 23rd Jan.,1965 were meant for their maintenance, education, marriage and other customary presents etc. This finding was recorded to repel the Revenue's contention that the transfers were void and the interest income from these transfers was assessable in the hands of the HUF. 7. We will refer to the family settlement deed date 23rd Jan., 1965 executed by the Karta of the family Shri R. R. Gaikwad. We will reproduce this document in full: "I, Rameshwar Rao Gaikwad aged about 82 years, son of Shri Ramaji Rao Gaikwad, 'Karta' of the HUF, known as 'Gaikwad family,' Napier Town, Jabalpur had executed this Deed of Family Settlement on this 23rd Jan., 1965 as I feel that I am growing old ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghters, I have relinquished all my claims over the said sums. No members of the family has any right to put up any claims on the above stipulated sum and if any body puts up his claims for the sums, it will be deemed to be false and frivolous. In presence of witnesses I put my signature hereunder in this Deed of Family Settlement, on this 23rd day of Jan., 1965, at Jabalpur. (R. R. Gaikwad) Signature Witnesses:- 1. Sd (Jai Kumar) 2. Sd (D.N. Kohli) 8. The authorities below selected a few sentences out of the whole deed and interpreted the settlement as gifts made by the Karta to his daughters "for fear that they may not be looked after properly after his death." This method of interpreting the document was not proper. The enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that even in respect of the sum, of Rs. 5,000 each settled by the Karta on his two married daughters there was no gift within the meaning of the GT Act and the transaction could not be brought to tax under the Act. 10. There is one more facet to this issue In the case of CGT vs. B. Subbaiah (1) the High Court was also considering the question of gifts of land made by the Karta of the family in favour of his married daughters. Following observations are relevant:- "It is not un often that an HUF announces gift of certain properties, on the occasion of the marriage of the daughter. The gift-deed or settlement deed might not have been executed simultaneously with the marriage or announcement Later when the family itself splits up on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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