COMMISSIONER OF GIFT TAX Vs. GOPIJI LAXMICHAND

JUDGEMENT

(1.) THIS is a reference under Section 26(1) of the G.T. Act, 1958 (for short, hereinafter referred to as "the Art"), at the instance of the Department by the Income-tax Appellate Tribunal, Indore Bench, Indore, referring the following question for our answer :

(2.) THE material facts, as obtainable from the statement of the case, giving rise to this reference are these :

(3.) AS a result of the above partial partition, Smt. Rajibai, (wife of the karta Laxmichand), Laxmichand, karta of the HUF, and Anandkumar, son of the karta, were allotted immovable assets of the value of Rs. 8,000, Rs. 7,000 and Rs. 40,000, respectively. This partial partition was accepted under Section 171 of the I.T. Act, 1961, by the ITO, vide his order March 7, 1975, with effect from October 25, 1970. Later on, the GTO found that only three persons, viz., Laxmichand, Smt. Rajibai and Anandkumar, were entitled to a share in the immovable properties on partition and each one of them should have received properties to the extent of Rs. 45,000, and as against this, the total value of the properties received by these three persons was only Rs. 55,000. The GTO, therefore, held that the rest of the properties to the extent of Rs. 80,000 received by Anandkumar's wife and their children amounted to a gift by the HUF in their favour. Holding thus, the GTO initiated gift-tax proceedings and subjected the amount of Rs. 80,000 to gift-tax.