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Section 2(xii) of the Gift-tax Act, 1958 - Gift - Assessment year 1964-65 - Whether unilateral declaration of a Hindu coparcener, whereby he throws his self-acquired property into common stock of joint family property does not amount to a transfer so as to attract provisions of Act - Held, yes FACTS The assessee, who was a member of a HUF, acquired a good deal of property both movable and immovable. By a deed dated 16-11-1963, the assessee declared certain self acquired properties to be the properties of the Hindu undivided family consisting of himself, his three sons and his wife. For the relevant assessment year, the assessee contended before the GTO that unilateral declaration of a Hindu coparcener, whereby he throws his self-acquired property into the common stock of joint family property does not amount to a transfer so as to attract the provisions of the Act. The GTO disallowed the assessee's claim. However, on appeal the AAC allowed it on appeal by the revenue the Tribunal upheld the decision of the AAC. On reference : HELD In view of the decision of the Supreme Court in Goli Eswariah's case [1970] 76 ITR 675 (SC), it is clear that the unilateral declaration of a Hindu coparcener, whereby he throws his self-acquired property into the common stock of joint family property, does not amount to a transfer so as to attract the provisions of the Act. The Tribunal was therefore, justified in holding that there was no gift of the movable and immovable properties liable to gift-tax. Note : The case has been decided in favour of the assessee. CASES REFERRED TO CGT v. Satyanarayanamurthy [1965] 56 ITR 353 (AP), Laxmibai Narayana Rao Nerlekar v. CGT [1967] 65 ITR 19 (Mys.), D.H. Nazareth v. GTO [1962] 45 ITR 194 (Mys.) and Goli Eswariah v. CGT [1970] 76 ITR 675 (SC). JUDGMENT Govinda Bhat, J.-This is a reference under section 26(1) of the Gift-tax Act, 1958, hereinafter called "the Act". The assessee was a member of a Hindu undivided family. He had acquired by his personal exertions a good deal of property both movable and immovable. By a deed dated November 16, 1963, the assessee declared two of his self-acquired properties to be the properties of the Hindu…

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