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TMI Blog1970 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and in the circumstances of the case, the Tribunal was legally justified in holding th at the gifts were to the detriment of the interest of the respective minors and not within reasonable limits in view of the provisions of the Hindu Minority and Guardianship Act, 1956 ? 2. Whether the Tribunal, on the facts and in the circumstances of the case, was justified in holding that the gifts were void at law ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee-firm was not entitled to the deduction of the interest of Rs. 9,000, paid to each of these two ladies, Smt. Prakash Wati and Smt. Snehlata ? " Lala Jugal Kishore together with his sons, Jai Prakash and Baij ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Tribunal reversed the finding of the Appellate Assistant Commissioner and allowed the appeal. The Tribunal held that, while the gifts must be considered to have been made by the kartas of the respective Hindu undivided families to their wives, the gifts being to the extent of Rs. 1,00,000, each could not be said to be reasonable and were detrimental to the interests of the minors. It pointed out that the gifts militated against the provisions of the Hindu Minority and Guardian ship Act, under which the interest of the Hindu minor had been considered as of paramount importance. Accordingly, the gifts were held to be void. Now, there can be no dispute that a father has the power of making a gift of ancestral movable property without the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia v. Commissioner of Income-tax followed the principle that a Hindu father could gift a part of the ancestral movable property without the consent of his sons, provided the gift was within reasonable limits. We may also refer to a decision of the Rajasthan High Court in Commissioner of Income-tax v. Brahant Dutt Bhargava, where, after discussing the case law on the subject, the learned judges observed : " This review of the legal position, in our opinion, is sufficient to establish two broad propositions. The first is that a gift by the manager of a joint Hindu family of the family property at any rate to a member or members thereof is voidable and not void ab initio. The second is that such a gift can be attacked only by the members of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what " reasonable " meant in this context : " The expression 'reasonable' means 'rational according to the dictates of reason and not excessive or immoderate'. An act is reasonable when it is conformable or agreeable to reason, having regard to the facts of the particular controversy. The question whether a particular gift made by a Hindu father is within reasonable limits must be answered with reference to the facts and circumstances of the particular case, the word 'reasonable' meaning what is just, fair and equitable in view of the value, income and financial position of the estate, the number of persons who constitute the joint Hindu family, the relationship which the donor bears to the donee and any other circumstances which may appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appointment or declaration of any person as guardian of a Hindu minor by a court, the welfare of the minor shall be the paramount consideration, and that no person shall be entitled to the guardianship if the court is of opinion that his or her guardianship would not be for the welfare of the minor. Inasmuch as the guardian has no right to act in respect of the undivided interest of the minor in coparcenary property, the emphasis lent by this declaration can hardly come into play in the present case. Upon the aforesaid considerations we answer the three questions referred as follows : Question No. 1 : In the negative. Question No. 2: In the negative. Question No. 3 : In the negative. The assessee is entitled to its costs, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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