MANI V S Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) UNDER Section 26(1) of the G.T. Act, 1958 (for short, " the Act ") the following question has been referred to this court:

(2.) SRI S. Vaidyanatha Iyer, who is now no more and who is the father of the assessee, executed a will on November 17, 1957, under which he bequeathed to the assessee 27 acres and 90 cents of wet lands and 5 acres and 32 cents of dry lands totalling 33 acres and 32 cents in certain villages in Kumbakonam taluk, Thanjavur District, to be enjoyed by him for his lifetime without any power of alienation. After the lifetime of the assessee the lands were to be taken by his grandson R. V. Ramani and Sakuntala and Lalitha, his grand daughters with absolute rights equally, that is, 1/3 share each. SRI Vaidyanatha Iyer died on September 5, 1958. The assessee took possession of the lands and was in enjoyment of the same. On January 25, 1970, he executed what is called a deed of release by and under which he gave up the rights in 18 items of wet lands of the total extent of 9 acres and 96 cents situated in one of the villages and set out in Schedule ' B' to the document and in one item of wet land of the extent of 4 acres and 74 cents and two items of dry lands of the extent of 28 cents totalling 5 acres and 2 cents and set out in Schedule ' C '. Under this deed, the release was in favour of R. V. Ramani and Sakuntala of Schs. B and C respectively. It was stated in the release deed that since the assessee was a bachelor and the income from the remaining lands bequeathed to him by his late father was considered sufficient for his needs and since he was desirous of accelerating the reversionary and absolute interest of the releasees mentioned therein he was giving up his rights in the lands.

(3.) IN the will executed by the deceased he has stated as follows: