COMMISSIONER OF GIFT TAX Vs. INDER SINGH RAJPUT

JUDGEMENT

(1.) THIS is a reference" preferred by the Revenue on a question as to :

(2.) THE term "gift" is defined in Section 2fxii) of the Gift-tax Act to mean the transfer by one person to another of any existing movable or immovable property made voluntarily and without consideration in money or money's worth, and includes the transfer or conversion of any property referred to in Section 4, deemed to be a gift under that section. Although under Section 2(xii) of the Gift-tax Act, the expression "transfer of property" has also been given an extended meaning so as to cover certain transactions which would not ordinarily be comprised within that term, it was held by the Supreme Court in the case of Goli Eswariah v. CGT [1970] 76 ITR 675 that the act of conversion of separate property by a coparcener of a Hindu undivided family into property belonging to the family did not fall within the normal or even the extended meaning of the term "transfer of property" under the Gift-tax Act and, hence, such an act of conversion of separate property into Hindu undivided family property did not attract liability to gift-tax.