1975 (12) TMI 14

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..... e material facts are : The assessee, who is an old gentleman doing business, did not have any male children. He wanted to take his younger brother's son in adoption. Since this was after the Hindu Adoptions and Maintenance Act of 1956, his wife's consent became necessary. The lady, however, was not willing to give her consent except under certain conditions. In her letter dated December 1, 1964, she expressed apprehension that the proposed adoption would curtail her prospective rights to inherit all the properties by one-half and also for the reason that the adopted son and she might not be able to live together amicably. So, in order to avoid all such troubles in future and to safeguard her own interests and to ensure a comfortable living .....

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..... al, the Appellate Assistant Commissioner was not prepared to agree with the Income-tax Officer's view that the transaction was not genuine. However, he felt that the assessee's contention cannot be accepted because under section 17 of the Hindu Adoptions and Maintenance Act of 1956, no person shall receive or agree to receive any payment or other reward in consideration of the adoption of any person, and no person shall make or give or agree to make or give to any person any payment or reward, the receipt of which is prohibited by that section. Since the words used in section 17, viz., "no person", are very wide in their ambit, the wife, who gave her consent to the adoption on taking some property, should also be covered by the expression. .....

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..... option. Section 17(1) says : "No person shall receive or agree to receive any payment or other reward in consideration of the adoption of any person, and no person shall make or give or agree to make or give to any other person any payment or reward, the receipt of which is prohibited by this section." What is prohibited is receiving or giving any reward in consideration of the adoption. That prohibition is against all persons. The assessee's wife would be a party to the adoption because she along with her husband must receive the boy at the time of adoption ceremony. Not only that, subsequent to the adoption, she would be the adoptive mother and the adopted son would be her adopted son as well, getting all legal rights. When she asked .....

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