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TMI Blog1998 (7) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... h in the partnership of the firm Mohanlal Hargovind Das, according to the interpretation of the deed of partnership and declarations made in regard to the gold bonds?" Accordingly, the Tribunal has referred the matter to this court on the aforesaid question of law. The brief facts giving rise to this reference are that the late Smt. Ujjambai Patel estate holder died on April 30, 1971. At the time of her death, she was a partner in the partnership firm, Mohanlal Hargovind Das, having a 1/8th share therein. As regards the property that passed on the death, the Assistant Controller of Estate Duty made an assessment on April 5, 1977, determining the principal value at Rs.34,84,144. The firm had three partners, namely, the deceased Smt. Uj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's claim that the value of the gold bonds to the extent of Rs.1,18,000 was not includible in the computation of principal value. In this connection, the stand was that by declarations dated November 6, 1967, and February 28, 1969, the deceased had given away 5 kgs. each of gold bonds in favour of Jodhsana Devi and Shobha Devi, respectively, and that the deceased was not the owner of the said asset on the date of her death though both the said gifts purported to have been made more than two years prior to April 30, 1971, but the Assistant Controller took the view that the gifts were not complete and the same were to become complete only on the date of maturity of the National Defence Gold Bonds, 1980. The Assistant Controller determined the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the appellate authority. The Revenue contended that the nine annas share in favour of the minor did not become complete at the time of gift dated November 25, 1965, but it became complete only when the said Siddharth Kumar attained majority on February 2, 1970, and that as the last said date fell within the period of two years from the death dated April 30, 1971, and section 9 became attracted. This contention of the Revenue was negatived by the Tribunal and it was held that the deceased had already gifted her share under the goodwill on November 25, 1965, and that became complete on that date irrespective of the fact that it was to be materialised on attaining majority by the minor. In this connection, reference was made to section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e condition regarding continuation of Shri Parmanand Bhai as owner of 50 per cent. of the good will. Therefore, when Siddharth Kumar attained majority, still another partnership deed dated February 3, 1970, was executed and the second and the third recitals of the said deed and clause 3 of the deed again con firmed the position about Parmanand Bhai's continued ownership of 1/2 share of the firm's goodwill. Thus, the view taken by the appellate authority was affirmed by the Tribunal that the deceased's share in the firm's goodwill was only to the extent of 1/16th though her share in the firm's profits was 1/8th only. Therefore, this contention of the Revenue also failed. Shri Tankha, learned counsel for the Revenue, has strenuously urged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 'gift' means the transfer by one person to another of any existing movable or immovable property made voluntarily and without consideration in money or money's worth, and includes the transfer or conversion of any property referred to in section 4, deemed to he a gift under ,that section." Therefore, once a transfer had been made voluntarily by the late Smt. Ujjambai in favour of the minor, Siddharth, that gift had been completed and attaining of his majority has no relevance. Likewise for the gift of gold bonds, its maturity has also no relevance. The gift is complete the moment there is a transfer of movable or immovable property voluntarily without consideration of money. In this view of the matter, the view taken by the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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