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1997 (7) TMI 58

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..... as 1/3rd owner and the remaining 2/3rds was owned by his two brothers. The house is obviously an ancestral house. The assessee was asked by the Revenue to provide evidence in this connection and he was further asked as to why an amount of Rs. 40,520 representing 2/3rds of Rs. 60,732 spent by the assessee on renovating the house should not be treated as a gift in favour of his brothers. The assessee could not furnish any plausible explanation and thereafter the Gift-tax Officer treated Rs. 40,522 as deemed gift. Aggrieved by the order passed by the Gift-tax Officer, the assessee preferred an appeal before the Appellate Assistant Commissioner who accepted the arguments advanced by the assessee that the transaction could not be treated as a de .....

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..... 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 be a gift under that section. Although under section 2(xii) of the Gift-tax Act, the expression "transfer of property" has also been given an extended meaning so as to cover certain transactions which would not ordinarily be comprised within that term, it was held by the Supreme Court in the case of Goli Eswariah v. CGT [1970] 76 ITR 675 that the act of conversion of separate property by a coparcener of a Hindu undivided family into property belonging to the family did not fall within the normal or eve .....

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..... e property of the individual stands converted into property belonging to the family through the act of impressing such separate property with the character of property belonging to his Hindu undivided family or throwing it into the common stock of the family, then notwithstanding anything contained in any other provision of this Act or any other law for the time being in force, for the purpose of computation of taxable gifts made by the individual, the said individual shall be deemed to have made a gift of so much of the converted property as the members of the Hindu undivided family other than such individual would be entitled to, if a partition of the converted property had taken place immediately after such conversion. We would, accord .....

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