COMMISSIONER OF INCOME TAX Vs. GURPRITT SINGH

JUDGEMENT

(1.) IN compliance with the directions of this Court under S. 256(2) of the INCOME TAX ACT, 1961, the Tribunal, Delhi Bench " C" has referred the following question for the opinion of this Court:

(2.) THE background of the facts in this respect is that a deed of gift was executed on 11th Jan., 1956, by the assessee's father, Shri Arjun Singh. It was narrated in the gift deed that in consideration of natural love and affection for his son, Gurprit Singh, Arjun Singh was transferring absolutely by gift, all the property known as 18 -A, Aurangzeb Road, New Delhi, to be owned and possessed by the donee absolutely. The market value of the said property was computed in this deed at Rs. 90,000 and stamp duty was, accordingly, paid and the document was registered. It was also narrated that the possession of the property had been conveyed to the donee and the donor was, thence on, shorn of all rights, title or interest in the property conveyed, and that the donee would be its absolute owner in possession.

(3.) WE have heard the parties and given our utmost consideration to all the circumstances. In my opinion, the facts of the present case amply bring out that Arjun Singh had gifted Rs. 50,000 and the property at 18 -A, Aurangzeb Road, New Delhi, to Gurprit Singh absolutely. The latter was at that time, unmarried and had no HUF of his own. The gift deed nowhere mentioned that it was being effected for the benefit of the family of Gurprit Singh which was still to be created in future. There has been no evidence nor it was pleaded before the I.T. authorities that Gurprit Singh had imprinted the property and the shares with the character of the HUF during the present years.