1986 (4) TMI 38

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..... the Income-tax Appellate Tribunal, Bangalore Division, Bangalore ("the Tribunal"), at the instance of the Revenue, has referred the following question of law for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the settlement deed dated September 21, 1972, did not result in an outright gift of an immovable property a .....

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..... that deed was registered without incorporating that clause. On the very next day of the registration of the said document, the son and daughter of the assessee executed an agreement (annexure B) undertaking to pay an annuity to the assessee and her husband as originally stipulated in the settlement deed. In the return filed under the Act before the Gift-tax Officer, Assessment 4, Circle-I, Ban .....

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..... see filed a second appeal before the Tribunal reiterating the very contentions urged before the Appellate Assistant Commissioner and the Gift-tax Officer. On February 17, 1978, the Tribunal allowed the said appeal and remitted the case to the Appellate Assistant Commissioner for fresh determination treating the agreement and the deed as one document. Hence, this reference. Sri K. Srinivasan, lea .....

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..... or payment of annuity by the son and daughter of the assessee. When one examines the settlement deed as executed and registered, there cannot be any doubt that the same constitutes a gift within the meaning of that term occurring in section 4(1)(a) of the Act. If that is so, the valuation made by the Gift-tax Officer and subjecting the same to tax under the Act does not suffer from any infirmity a .....

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..... ies that cannot properly be held by the authorities under the Act. We have carefully read the rulings relied on by Sri Srinivas. We are of the view that the ratio in those cases does not really bear on the question. On the foregoing discussion, we hold that the Tribunal was in error in relying on the agreement and directing the Appellate Assistant Commissioner to treat the deed and the agreeme .....

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