Law:

Section:

Section 2(xii) read with section 2(xxiv)(d), section 4(1)(c) and section 3, of the gift tax act, 1958-Gift-Chargeable to tax-Assessee was to receive income for lifetime from property settled by a in trust-After assessee's death said property was to pass on absolutely to settlor's children-Assessee, out of natural love and affection, released her life interest in certain selected trust properties in favour of said children-Whether transaction affected by impugned release deed taxable under the gift-tax act-Held, on facts, no Facts By the deed of trust dated 30-8-1949, settlor A, settled certain properties, comprising 56 shares of S. Ltd. and 60 shares of K. Ltd., into three trustees and in consideration of love and affection which he bore towards his sister, being the assessee, and his children and grandchildren, affected the trust of the said shares and directed the trustees to pay the net income of the property to the assessee during her lifetime for her absolute use and benefit. It was further provided that after the assessee's death, the trustees shall transfer and assign the trust property absolutely to the settlor's children, etc., in specified proportions. Pursuant to the aforesaid deed, the assessee was paid the net income arising from the trust property for a number of years. Thereafter, by a release deed dated 12-7-1964, the assessee, out of natural love and affection, released and surrendered her rights and life interest in the part of the trust property's income (20 shares of K. Ltd. and 30 shares of S. Ltd.) in favour of the said children who were even otherwise to get the said trust property after her demise. For the assessment year 1965 66, the GTO assessed the value of the assessee's released interest at Rs. 1,29,333 for the purposes of gift-tax. Thereafter, the assessee pointed out to the GTO that her assessment order was suffering from an apparent error that section 4(1)(c ) was inapplicable since the impugned release deed was to be treated as bona fide. The ITO rejected the assessee's contentions. On appeal, the AAC observed that the impugned release was bona fide and, accordingly, set aside the ITO's order. The Tribunal, on appeal by revenue,…

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