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TMI Blog2003 (1) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee and the donee-society as part of the same transaction and whether in view of the said agreement there could not be said to be a gift to the donee absolutely until the conditions in the agreement were fulfilled ? - This Question is answered by holding that the gift deed and the agreement both dated September 27, 1964, could not be treated as part of the same transaction and that the gift to the donee was absolute and irrevocable - 3. Whether on a proper interpretation of the gift deed dated September 27, 1964, as also the agreement dated September 27, 1964, between the assessee and the donee, i.e., Chatrapati Shivaji Co-operative Education Society, Kolhapur, there could be valid gift of the property known as Shalini Palace by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be a gift to the donee absolutely until the conditions in the agreement were fulfilled ? 3. Whether on a proper interpretation of the gift deed dated September 27, 1964, as also the agreement dated September 27, 1964, between the assessee and the donee, i.e., Chatrapati Shivaji Co-operative Education Society, Kolhapur, there could be valid gift of the property known as Shalini Palace by the assesses ? 4. Whether the gift of Shalini Palace by the assesses was subject to condition subsequent and the entire gift failed on non-fulfilment of that condition ?" The assessee/an individual was former ruler of Kolhapur and was owner of several immovable properties including property known as "Shalini Palace" situated at Kolhapur. The assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the society also requested that permission may be given to give the name of the donor to the proposed medical college, considering the aims of the donee-society, the donor acceded to the request made by the promoters of the said society. The donor allowed to give his name to the proposed medical college and he agreed to give as a gift the aforesaid property as mentioned in item No. 1 to the donee-society. The property as mentioned in item No. 1 above which was owned by the donor, was agreed to be given as a gift without any consideration to the society to start a medical college by name 'Chatrapati Shahaji Medical College' and the same gift was accepted by the donee-society for starting 'Chhatrapati Shahaji Medical College.' (3) The pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lisation of the gifted property. One of the important conditions under the agreement was that the said society will pay to the assessee as compensation, a sum of Rs. 20,00,000 if the terms of the agreement for utilisation of the gifted property are not followed and for that purpose, a charge of Rs. 20,00,000 was to remain on all properties owned by the donee-co-operative society. From the facts on record, it is seen that the medical college was not started by the society and in October, 1968, the society sold the said Shalini Palace for Rs. 16,00,000 to a third party. The assessee who was to receive Rs. 20,00,000, under the agreement dated September 27, 1964, if the terms of the agreement are not complied with, agreed to receive Rs. 16,00,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der no circumstances was the gifted property to revert back to the assessee, On execution of the said gift deed the donee became the exclusive owner of the property and possession of the property was also handed over to the donee-society. As rightly contended by counsel for the assessee, the gift deed and the agreement although executed on the same day on September 27, 1964, they are independent of each other and there is no justification to read both the documents together. From the facts placed on record it is seen that on execution of the gift deed, possession of the property was handed over to the donee and from the date of the gift, the donee-society as absolute owner of the said property was liable to pay all taxes, cess, etc., payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the gifted property was sold for a higher amount, under the agreement the assessee was entitled to receive only Rs. 20,00,000 and not the entire sale amount. Under the circumstances, the Tribunal has rightly held that the gift deed is separate and distinct from the agreement and on executing the gift deed, the assessee ceased to be the owner of the said property. Therefore, in the facts of the case, we see no reason to interfere with the finding of fact given by the Tribunal. Accordingly, we answer Question No. 1 : In the negative and in favour of the assessee. Question No. 2: Is answered by holding that the gift deed and the agreement both dated September 27, 1964, could not be treated as part of the same transaction and that the gi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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