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TMI Blog1967 (4) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 26(1) of the Gift-tax Act, 1958, hereinafter to be referred to as the Act, has referred the following question, viz. : "Whether the gifts in question are liable to be taxed under the Gift-tax Act?" The statement of the case discloses that the assessee (respondent) is a Hindu undivided family consisting of two brothers, P. Hanumanthappa and Sanjeevappa, who have made certain gifts of im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h as there was no legal validity and further that they were exempt from the provisions of the Act. The Appellate Assistant Commissioner rejected these contentions and confirmed the assessment holding that the gifts were voidable and as nobody had challenged the gifts it cannot be argued by the representative that they are invalid. The Appellate Tribunal in appeal, however, reversed these findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hindu law, namely, for legal necessity or for pious purposes or in favour of female members of the family so as long as the property is of a reasonable extent. Further, the partition of a joint family property does not involve transfer, which is one of the essential ingredients of a gift. That partition of a joint family does not involve a transfer is now well settled by their Lordships of the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on.
Viewing these gifts from either aspect referred to above, there are no gifts to attract the provisions of the Gift-tax Act. In this view, we are satisfied that the Tribunal is justified in its conclusion.
Our answer to the question is, therefore, in the negative and against the department with costs. Advocate's fee Rs. 250.
Question answered in the negative. X X X X Extracts X X X X X X X X Extracts X X X X
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