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TMI Blog1974 (12) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the deed, he was to be in possession and enjoyment for, life of all the items mentioned in the Schedule and, thereafter, they should devolve upon his grandsons. The item with which we are now concerned is item 5 in the schedule to the settlement deed. That item reads : " Half share of my rights in the medical shop which is carried on in the name of my adopted son, Ramasubramanyam, situated in the 7th Ward, Door No. 22, at Pittapuram (in a rented building) and medicines, furniture, etc., valued at Rs. 15,000......" The case of the assessee throughout has been that it was a gift in futuro and not in praesenti, and, therefore, it was not liable to be taxed. That contention was negatived by all the authorities below. Therefore, the leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the duration of his life. That limited right which he exercised will not make it a gift in futuro. A Full Bench of the Allahabad High Court in Lallu Singh v. Gur Narain AIR 1922 All 467 [FB] considered the question of the validity or otherwise of a deed of gift executed by one Tulsha Kunwar in favour of her only daughter. In the document, it was recited that the donor wished to give the entire property in seven villages to her daughter, but inasmuch as during her lifetime she had also to provide for her own maintenance, she considered it necessary to remain in possession of three out of those villages for her life, meeting the expenses of her maintenance and other necessary expenses from the profits thereof. Mears C.J., who spoke for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of an undivided joint family can gift away the entire properties belonging to the joint family consisting of himself, his wife and daughter ; and it was held that such a gift was invalid. In so holding, Jaganmohan Reddy C.J. (as he then was) followed the decision of the Supreme Court in Guramma v. Mallappa AIR 1964 SC 510, 517, where Subba Rao J. (as he then was) observed : " It must be remembered that the manager has no absolute power of disposal over joint Hindu family property. The Hindu law permits him to do so only within strict limits." The present case is not one where the assessee had no power of disposal over the various items of property gifted by him since they are not the properties of any joint family ; and it was nobod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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