COMMISSIONER OF INCOME TAX Vs. SURAJ BAL

JUDGEMENT

(1.) THE following question has been referred by the Tribunal:

(2.) THE facts are these. Smt. Suraj Bai, assessee, executed 3 unregistered gift deeds on November 26, 1956. By the first gift deed she gifted 735 shares of the Maharaja Salt Works Co. Ltd. to her minor grandson, Ram Swarup. THE execution of the gift deed was accompanied by the actual delivery of share certificates of 735 shares and blank transfers. Smt. Parmeshwari Devi accepted the gift on behalf of her minor son, Ram Swarup. By the second gift deed she similarly gifted 710 shares of the aforesaid company to her second minor grandson, Ramesh. THE execution of the gift deed was accompanied by the actual delivery of the share certificates and the blank transfer deed of the respective shares to the donee which was accepted by his mother, Smt. Parmeshwari Devi, who was his natural guardian. By the third gift deed she gifted 1,000 shares of the aforesaid company to her daughter-in-law, Smt. Parmeshwari Devi. THE execution of the gift deed was accompanied by the actual delivery of the share certificates and blank transfer deeds in respect of these shares to the donee.

(3.) THE above decision was relied upon by their Lordships of the Supreme Court in R. Mathalone v. Bombay Life Assurance Co. Ltd., [1954] 24 Comp. Cas. 1; [1954] S.C.R. 117; A.I.R. 1953 S.C. 385. It was held as follows :