DEIVANAIAMMAL Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) THESE references have been pending in this court for the last 18 years. The assessment year is 1972-73. There are two references. One at the instance of the assessee and the other at the instance of the Revenue. The questions referred are :

(2.) THE document dated September 1, 1971, was executed by one Rama-samy Nadar under which a life interest was created in certain lands in favour of his wife and his mother. THE assessee contended that the document is a family arrangement and not a gift deed. THE Gift-tax Officer held that the document though styled as a partition deed was in fact a gift deed so far as the wife and the mother were concerned. THE Appellate Assistant Commissioner agreed with the Gift-tax Officer. THE legal representatives of the deceased assessee as also the Department filed appeals before the Tribunal. THE Tribunal found, as on September 15, 1971, the settlor, Rama-samy Nadar, was the sole surviving coparcener, that he had his second wife and his mother and two unmarried daughters as on that date. THE Tribunal held that the settlement of the properties on the two daughters and their children amounts to gift or transfer without consideration and is exigible to gift-tax. So far as the provision for maintenance of the second wife and the mother of the settlor, the Tribunal held that only a life interest was created in lieu of the pre-existing right to maintenance and it is not an instance of transfer without consideration and did not, therefore, amount to gift.