COMMISSIONER OF INCOME TAX JAIPUR Vs. SIREHMAL NAWALAKHA

JUDGEMENT

(1.) The respondent was the owner of immovable property and by declaration dated 10th October, 1966 he sought to give a gift of certain out-houses attached to a building to his wife.

(2.) The declaration which was made was not registered. The Gift-tax Officer rejected the respondent's claim that a valid gift had been made as, according to him, there had not been any compliance with the provisions of Section 123 of the Transfer of Property Act. The Assistant Commissioner and the Tribunal took the same view and thereafter following question of law was referred to the High Court by the Tribunal :

(3.) By the impugned judgment the High Court answered the question of law in favour of the respondent. It came to the conclusion that the definition of the word 'gift' under the Gift-tax Act was wider than the definition of 'gift' in the Transfer of Property Act and many Acts and transactions which may not amount to gift under the Transfer of Property Act shall still amount to a gift under the Gift-tax Act especially by virtue of the provisions of Section 4 of the Gift-tax Act. It, accordingly, came to the conclusion that it was not necessary that a document should be registered in order that there should be a valid gift.