SUBRAMANIA IYER P K Vs. COMMISSIONER OF GIFT TAX
HIGH COURT OF KERALA
P.K. SUBRAMANIA IYER
COMMISSIONER OF GIFT TAX, KERALA, ERNAKULAM
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(1.) This is a reference at the instance of the assessee by the Income Tax Appellate Tribunal, Madras Bench, under S.26(1) of the Gift Tax Act 1958. The question referred is:
"Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the abandonment by the assessee of his exclusive right to the self acquired properties in favour of the joint Hindu family amounted to a gift within the meaning of S.2(xii) read with S.2 (xxiv)(d) of the Gift Tax Act, 1958 -
(2.) S.2(xii) of the Gift Tax Act, 1958, defines the expression "gift". According to that definition "gift" means "the transfer by one person to another of any existing movable or immovable property made voluntarily and without consideration in money or money's worth, and includes the transfer of any property deemed to be a gift under S.4". S.4 deals with certain transfers which have to be deemed to be gifts for the purposes of the Act. We are not concerned with that section in this case.
(3.) S.2(xxiv) of the Gift Tax Act, 1958, defines the expression "transfer of property". According to sub clause (d) of that section, that expression will include "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 the property of any other person". The remaining portions of the definition of the expression "transfer of property" do not arise for consideration in view of the wording of the question referred for decision.;
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