K V IYER Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) WE record, before we enter on the reference, that it is entirely on account of such acts of the assessee, to which we shall advert, while taking note of the statement of the case, which have put him in a mess, that if there are any complications, they are all created by him.

(2.) THE assessee is a Hindu, having a family consisting of his wife and unmarried minor daughters. He purportedly put certain monies in the common stock of the family, calling it a Hindu undivided family, and such monies in the common stock were later gifted to his wife and minor daughters. Various dates, on which he purportedly put certain monies in the common stock of the so called Hindu undivided family and the dates on which the said amounts were gifted to his wife and daughters are shown as under : <FRM>JUDGEMENT_461_ITR215_1995Html1.htm</FRM>

(3.) THE specific provision as to the Hindu undivided family is that the monies put in the hotchpot of the Hindu undivided family, and divided according to the shares of the members of the undivided family are not a gift, and the amounts allotted to each member of the joint family are not liable to gift-tax. THE individual, who otherwise is the owner, could bring a property or estate exclusively belonging to him in the hotchpot of the joint family and after such conversion, as envisaged under the Wealth-tax Act, the individual who otherwise is the owner, is not liable to wealth-tax, as the property ceases to be the property in his hands.