Law:

Section:

Section 2(xii) of the Gift-tax Act, 1958 - Gift - Assessment years 1968-69 and 1969-70 - Assessee, who had been a racegoer, received a huge amount in horse racing on 25-2-1968 - On 6-3-1968 there was a partition among assessee, his wife and five sons - Partition deed dealt with, among other things, said prize money - It was clear from preamble of partition deed that all members of family including assessee treated entire amount as property belonging to HUF - There was also a statement in said preamble that ticket was purchased from out of joint family money - Whether since there was an intention clearly discernible from beginning as seen from statements in relevant documents to treat said amount as HUF fund, income-tax authorities were not entitled to question such treatment and they could not question motive behind that nor could they change character or nature of fund by saying that reasons which prompted for so treating amount did not exist or that they were not valid reasons for so treating - Held, yes - Whether, therefore, every part of said sum was property which belonged to HUF representing wealth of HUF - Held, yes - Whether, therefore, shares of assessee's sons and wife in prize money would not constitute gift - Held, yes FACTS The assessee had been a racegoer for over a quarter of a century. On the 25-2-1968, he received a large amount, what was called the jackpot in horse racing parlance. Soon after, there was a partition deed on 6-3-1968 entered into among the assessee, his five sons and his wife. This partition deed dealt with, among other things, the said amount which the assessee won at the races. It was clear from the preamble of the said deed that all the members of the family including the assessee treated the entire amount as the property belonging to the HUF and they divided the entire property by the document dated 6-8-1968 and by the document of 8-8-1968, and utilised the balance exclusively for the benefit of the HUF. There was also a statement that the ticket was purchased from out of joint family money. However, for the assessment years in question the revenue authorities held that the aforesaid amount divided among the family members…

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