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TMI Blog1978 (6) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... " the Act") were not attracted ? " By an indenture of wakf executed on March 4, 1941, the assessee created a wakf and constituted himself as a sole trustee. By the said indenture, the assessee assigned and transferred to the trustee the properties mentioned in the schedule thereto. After making provision for collection of rents and profits, payment of taxes and incurring of expenditure, by cl. (3) of the indenture the gross income was to be paid to the settlor for and during his lifetime and down to his death, and after his death the same was to be paid to the children of the settlor living at the time in certain proportions mentioned in the said clause. Clause (19) of the indenture of wakf gave power to the assessee to alter the benefic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to his lineal descendants both male and female during their lives and from generation to generation until the total extinction of such lineal descendants both male and female subject nevertheless to and in accordance with the rules set out in clause 7 of the deed of wakf-alal-aulad... The document concluded by saying ; " And these presents lastly witness that in order to effectuate the said desire the settlor doth hereby release and disclaim the powers of revocation and new appointment and of altering the provisions and/or the beneficiaries of the trusts and all other powers reserved to the settlor by clause 19 by the said recited deed of wakf-alal-aulad to the intent that the said powers hereby released may henceforth be extinguished a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred by the assessee, the AAC rejected all the contentions urged on his behalf. He confirmed the finding of the GTO that the assessee was the owner of the trust property up to March 30, 1964, on which date it was gifted by him. He further held that as a result of the document dated March 30, 1964, his relinquishment of life interest in favour of his heirs would clearly come within the meaning of transfer of property as defined in the Act. So far as s. 4(1)(c) of the Act was concerned, he did not consider it necessary to go into the provisions of the said section. In a further appeal before the Tribunal it took the view that by reason of the execution of the document dated March 30, 1964, gift-tax was not attracted. It held that the gif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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." The expression " transfer of property " is defined in s. 2(xxiv) of the Act and the relevant part of the definition for our purpose is as under : " ' Transfer of property ' means any disposition, conveyance, assignment, settlement, delivery, payment or other alienation of property, and, without limiting the generality of the foregoing, includes-- .......... (d) any transaction entered into by any person with intent thereby to diminish directly or indirectly the value of his own property and to increase the value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e persons are parties. In the present case the document executed on March 30, 1964, is a unilateral document to which the assessee alone is a party, nobody else is a party thereto. Thus, in view of this clear pronouncement by the Supreme Court, mere execution of this document cannot be regarded as a transaction and it will not, therefore, fall within the definition of " transfer of property " under s. 2(xxiv)(d) of the Act and cannot be regarded as gift within the meaning of s. 2(xii) thereof. That takes us to the question whether the execution of the document dated March 30, 1964, can be regarded as gift within the meaning of s. 4(1)(c) of the Act. That section, provides as under : " Gift to inclvde certain transfers.--(1) For the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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