COMMISSIONER OF GIFT TAX Vs. TARACHAND MEGHRAJ

JUDGEMENT

(1.) This is a reference under Section 26(1) of the Gift-tax Act, 1958. The assessment year involved is 1958-59. The applicant in this reference is Commissioner of Gift-tax, West Bengal III, Calcutta. The question referred is as follows :

(2.) The facts which are found or admitted as appearing in the statement of the case and the annexures thereto are briefly as follows : The assessee, M/s. Tara Chand Meghraj of Calcutta, is a Hindu undivided family governed by the Mitakshara. At the material time one Surajmall Baid was the karta of the said Hindu undivided family. On the 28th March, 1957, a document recording a family arrangement was executed by the members of the said Hindu undivided family, viz., the karta, Surajmall Baid, his wife, Hira Kumari Baid, and his unmarried daughters, Kamala Kumari and Indu Kumari, who were at the relevant time respectively aged 20 years and 18 years. The other children of Surajmall Baid, viz., one daughter and two sons, members of the Hindu undivided family, were at the relevant time minors.

(3.) The said document dated the 28th March, 1957, contained, inter alia, the following recitals :