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Section 3 of the gift-tax act, 1958-Hindu undivided family-Taxable gifts-Assesses declared before statutory authority about partition between him and his son in 1955-Assesses made subsequent settlement, inter alia, in favour of his son-He claimed immunity from gift-tax as gift from karta of HUF to coparcener void-Whether tribunal right in law in holding that HUF continued to exist, that settlement in favour of son void and that settlement not taxable as gift-Held, on facts, no Facts The assessee was a karta of a joint family consisting of himself and his son S. He had made a declaration before the authorised officer under Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 that there was partition in 1955 and that certain lands had been given to S. In 1969, he executed two settlement deeds-one in favour of his son and another in favour of his married daughter. In compliance with a notice under section 13(1), the assessee submitted a return showing the value of the gift at Rs. 76,900 (against actual value of Rs. 49,370). He, however, claimed immunity from gift-tax on the grounds that the gift to a son was a gift to a coparcener and was void and that the HUF could not make any gift to a daughter. The GTO and AAC negatived the assessee's plea. On further appeal, the Tribunal upheld the assessee's claim that the gift to a coparcener was void but, as regards gift in favour of daughter, it held that it was only a voidable transaction and that, so long as it was not avoided, it was valid. On reference : Held 1. It is an elementary proposition of law, as far as Hindu law is concerned, that partition is a severence of joint status and, as much, is a matter of individual volition. All that is necessary to constitute a partition is the definite and unequivocal indication of the intention by a member of a joint family to separate himself from the family and enjoy his…

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