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TMI Blog2006 (2) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... infirmity. - In view of the foregoing conclusions, we hold that the gift was a gift in contemplation of the death and not taxable. Hence, we answer the questions in favour of the assessee, against the Revenue X X X X Extracts X X X X X X X X Extracts X X X X ..... attended by a number of friends and relatives. It was on the occasion of the latter celebration, Thevanai Achi placed the key of the iron safe in which the jewelleries were kept, in the hands of the child C. Venkatachalam, and blessed the child on August 19, 1974. She, thereafter, filed a gift-tax return dated August 19, 1974, with the Fifth Gift-tax Officer, City Circle-I, Madras, on August 20, 1974. In this return, it was stated that the cash of Rs. 4,500 was gifted on June 10,1974 and jewellery of the value of Rs. 81,000 was gifted on August 19, 1974. The name of the donee was given as C. Venkatachalam, minor son of Sri V. Chidambaram. Smt. Thevanai Achi had affixed her left hand thumb impression in the declaration of the return and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cilitate the estate duty proceedings. I shall file the return as soon as the gift-tax proceedings are completed." The earlier letter referred to, was dated December 31, 1975, in which also he had asked for time till the completion of the gift-tax proceedings. Thereafter, on February 16, 1977, M/s. Palaniappan and Viswanathan, CAs., wrote to the Income-tax Officer as under: "The above deceased has filed a gift-tax return with you in respect of the gift made by her to Master C. Venkatachalam on August 19, 1974. She expired on August 28, 1974 and the gift was in contemplation of her death. Now the donee's father and guardian has been advised that the deceased need not have filed the gift-tax return as the gift made by her was exempt under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redient of expectation to die shortly of her illness, which is so essentially an ingredient to establish a gift in contemplation of death. The Commissioner (Appeals) then proceeded to observe that the gift was made on the occasion when the child that was born to her grandson after a period of ten years of married life, was taken to her for obtaining her blessings and that the motive to make the gift, therefore was directly relatable to the happiness derived by her on seeing her great grand-child. He also found that the conduct of the parties evidenced by the furnishing of returns and writing of letters supported his conclusion that it was only an ordinary taxable gift. Aggrieved by the above order, the assessee preferred appeal before the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hortly of illness. If that is satisfied, it admittedly and automatically follows that the gift is in contemplation of death. We have seen that the Tribunal had accepted the supporting evidence, i.e., medical certificate of the doctor, which is as follows: "Dr. P.V. Ananthanarayanan, Regd. Medical Practitioner, Registration No. 9260 I have been attending to Mrs. C. V. CT. Thevanai Achi for her hypertension when I was attached to Government Hospital, Kanadukathan. After I left Kanadukathan in December 1964 and settled down at Karaikkudi, I used to attend on her whenever I was summoned to see her. Sometime in the middle of 1974, her pressure increased and she also developed a mild paralysis of right side of her body (Right Sided Hemiplegis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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