Law:

Section:

Gift tax--Validity of gift--Each case has to be decided on the facts of that case--Gift by book entry--When valid? In order to constitute a valid gift, there must be an existing property. 1n the case of entries in the books of account by credit and debit, the sums should be available on the date of gift in the account of the firm whose accounts are said to be credited or debited. In the case of banking companies or other firms and companies who have overdraft facilities, even if the sums are not in credit of the donor and are not with such companies or firms, gifts might be possible by adjustment of book entries. But in the case of non-banking companies or firms, if those companies or firms do not have overdraft facilities, it is not possible to make valid gift if sums or funds are not available. Each case must be decided on the facts of that case. Where the assessee has a credit account with firm or with family or with a banking company and that sum is available to that firm or the company or Hindu undivided family on the date of the gift, then a valid gift by book entries might be possible but where a sum was not available with the firm or the family or a company which was not a banking company or which had no overdraft facility, mere book entries, even though there was acceptance of that gift by the donee, would not effectuate a valid gift. Except to the extent indicated above; the entries in the books of account could not effectuate gifts. Abba Dada and Co. v. C.I.T. (1938) 6 I T R 470 (Rang.); Badri Prasad Jagan Prasad v. C.I.T. (1985) 156 I T R 430 (SC); Balimal Nawal Kishore v. C.I.T. (1966) 62 669 (P & H); Bhau Ram Jawaharmal v. C.I.T. (1971) 82 I T R 772 (All.); Chimanbhai Lalbhai v. C.I.T. (1958) 34 I T R 259 (Bom.); CGT v. Tarachand Meghraij (1977) 109 I T R 775 (Cal.); C.I.T. v. Ashok Glass Works (1976) 103 I T R 379 (Cal.); C.I.T. v. Devichand Uttamchand (1984) 148 I T R 530 (Bom.)i6J.T. (Addl.) v. Dharsey Keshavji (1983) 143 I T R 509 (Bom.); C.I.T. v. jay Digvijaysinghji. Tin Factory (1959) 36 I T R 72 (Bom.); C.I.T. v. Popatlal Mulji (1977) 108 I T R 4 (Bom.); C.I.T. v. Shyamo Bibi (Smt.) (1966) 59 I T R 1 (All.); C.W.T. v. Gulab Rai Govind…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492