Law:

Section:

Section 2(xii) of Gift-tax Act, 1958 - Gift-Meaning of - Whether conversion of self acquired property into joint family property amounts to transfer so as to come within scope of definition of gift under section 2(xii) - Held, yes FACTS The assessee, an individual, converted his self-acquired property into joint family property, and made an entry in his books on 31-3-1957 that in future the business of brick kiln run by the assessee would be the property of the HUF consisting of himself and his sons. The GTO assessed to gift-tax on the ground that the transaction constituted a gift. On second appeal, the Tribunal, however, cancelled the assessment. On reference: HELD According to the main definition contained in clause (xxiv ) of section 2 transfer of property means any disposition of property. When the assessee converted his self-acquired property into joint family property, he certainly disposed of his property. There was, therefore, no difficulty in describing this process as 'transfer of property' as defined in clause (xxiv ) of section 2. The definition of gift had got several elements. The first element was that there must be transfer by one person to another. The transaction under consideration involved transfer of property. This was a transfer by assessee to the joint Hindu family. According to clause (xviii) of section 2, a HUF is a person. The second element was that the transaction must involve movable or immovable property. That test was satisfied in the instant case. The gift must be voluntary. There was no suggestion that the conversion of the self-acquired property into joint family property was not voluntary. The last element was that the transfer must be without consideration in money or money's worth. There was no suggestion that the joint Hindu family passed any consideration to the assessee to persuade him to convert his self-acquired property into joint family property. Thus, all the elements of gift given in clause (xxii) of section 2 were satisfied in the instant case. The transaction thus constituted a gift under section 2(xxii). Note : The case was decided against assessee. CASES REFERRED CGT v. Getti Chettiar [1966] 60 ITR 454 (Mad.),…

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