V.P. Elhence, Judicial Member - (1.) THE interesting question involved in this appeal, filed by the assessee, is whether the transfer of 50,000 equity shares of Rs. 10 each of Jagatjit Industries Ltd. made by the assessee to Miss Gayatri Malhotra on 18-7-1980 was treatable as a gift within the meaning of Section 2(xii) of the Gift-tax Act, 1958 ('the Act').
(2.) For the assessment year 1981-82 in question, originally, the assessee filed a return on 27-1-1981, declaring a gift of Rs. 5,87,500. Later on, he filed a revised return declaring a nil gift. However, the GTO treated the transfer as a gift and assessed the assessee accordingly. In appeal, the learned Commissioner (Appeals) held that there was no adequate consideration measurable in terms of money's worth. He did not accept the contention raised on behalf of the assessee that there was a marriage agreement or ante-nuptial agreement and that the transfer of shares was by way of consideration of the promise by the lady to marry the assessee.
(3.) THE assessee, being aggrieved, has come up in appeal before us. Shri K. Annadhanam, the learned counsel for the assessee, submitted that the transfer of shares made by virtue of pre-nuptial agreement was not a gift as it was outside the ambit of the Act. On the other hand, Shri S.K. Bansal, the learned departmental representative, strongly relied upon the order of the Commissioner (Appeals). He also referred to the following decisions : Tulsidas Kilachand v. CIT[l96l] 42 ITR 1 (SC), Potti Veerayya Sresty v. CIT [1972] 85 ITR 194 (AP), CWT v. Khan Saheb Dost Mohd. Alladin [1973] 91 ITR 179 (AP) and CIT v. Vivian Bose [1979] 118 ITR 989 (Bom.).;