PYNDAH SATTI RAJU Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) THE short but interesting question that arises in this reference is whether a half share of the assessee's rights in a medical shop inclusive of medicines and furniture valued at Rs. 15,000 is taxable under the Gift-tax Act, 1958 (Act No. 18 of 1958).

(2.) THE assessee, Pynda Satti Raju, executed a settlement deed on January 31, 1964, in favour of his daughter's sons who are now the legal representatives of the assessee. Under the terms of the deed, he was to be in possession and enjoyment for life of all the items mentioned in the Schedule and, thereafter, they should devolve upon his grandsons. THE item with which we are now concerned is item 5 in the schedule to the settlement deed. That item reads :

(3.) "Property "is defined in Clause (xxii) of Section 2 to include any interest in property, movable or immovable.