9911796707
TMI Blog1982 (7) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... for our determination are as follows : " (1) Whether, on the facts and in the circumstances of the case, the assessee validly gifted a sum of Rs. 51,000 to his son, Kantilal ? (2) Whether, on the facts and in the circumstances of the case, the interest relatable to the aforesaid sum of Rs. 51,000 could be included in the total income of the assessee ? " Although the Tribunal has set out the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 969-70, as, according to him, it was his son, Kantilal, who was the owner of the one-third share of the said property. The ITO, however, included the one-third share of the income of the said property in the assessee's hands in the said assessment years on the basis that it was the assessee who had purchased the one-third share in the said property benami, in the name of his son, Kantilal. As the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company. M/s. Jayantilal Navnitlal and Company debited Rs. 51,000 to the account of Keshavji Mavji and Company and credited it to the account of Kantilal, and M/s. Keshavji Mavji and Company credited Rs. 51,000 in its books of account to the account of M/s. Jayantilal Navnitlal and Company. Interest was credited to the account of Kantilal year after year in the books of account of M/s. Jayantilal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a number of cases that there can be a valid gift effected by making entries in the books of account, if there is evidence to show that the gift was made by the donor and accepted by the donee and was acted upon by both of them. If any authority were needed in support of the said proposition, we would refer to CIT v. Popatlal Mulji [1977] 108 ITR 4, being the judgment of a Division Bench of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to do with it. In view of this, it must be held that the assessee validly made a gift of the said amount to his son, Kantilal. In the result, the questions referred to us are answered as follows Question No. 1 In the affirmative. Question No. 2 In the negative. It is clarified that both the questions are answered in favour of the assessee. The Commissioner to pay the costs of the referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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