JANA VEERA BHADRAYYA Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) THE question we are called upon to answer in this reference is worried thus:

(2.) THE facts giving rise to this reference lie in a very narrow compass and are undisputed. One Nagamallayya who happened to be the manager of the joint Hindu family made a gift of some property belonging to the joint family to his wife on 14-7-1957 or an extent of Ac. 31-83 cents, valued at Rs. 34,000. He also made some gifts to his daughters and other near relations. But we are not concerned with them here, as no exemption is claimed in regard thereto. He submitted a return of the gifts made by him and therein he claimed exemption in respect of the gift to his wife.

(3.) THE short question that calls for decision is whether this gift falls outside the purview of Section 5(1)(viii) of the Act. Before we proceed to consider the matter further, it is convenient to quote that clause which reads us follows: