| Case ID |
0beb4297-8b27-43a7-ad90-c5aff0972678 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Tribunal found that the shares were gifted to the family of the assessee. If there was no such family, the gift would fail. The ruling established that if a gift is made to a Hindu undivided family (HUF) and if there is no such HUF in existence, then the gift will fail. The shares cannot be claimed by any individual if they were intended for a family that does not exist. Therefore, the shares in question could not be assessed in the hands of the assessee as an individual, and the decision was in favor of the assessee. |
| Summary |
This case revolves around the assessability of shares gifted to a Hindu Undivided Family (HUF) under the Wealth-tax Act, 1957. The key issue was whether the assessee, Prokash Kumar Mohta, could be assessed as an individual for the value of shares gifted to a non-existent HUF. The court found that the gift would fail due to the non-existence of an HUF, leading to the conclusion that the shares could not be claimed by the assessee as personal property. This case emphasizes the legal principles governing gifts to HUFs and their implications for wealth assessment. Key terms include 'Hindu Undivided Family', 'Wealth-tax Act', and 'assessability'. These concepts are crucial for understanding the legal framework surrounding familial property and taxation, and they highlight the importance of existing legal structures when dealing with inheritance and gifts. |
| Court |
Calcutta High Court
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| Entities Involved |
Not available
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| Judges |
SUHAS CHANDRA SEN,
BHAGABATI PRASAD BANERJEE
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| Lawyers |
R.N. Bajoria,
J.P. Khaitan,
R.D. Misra
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Prokash Kumar Mohta
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| Citations |
1991 SLD 1769 = (1991) 189 ITR 557
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| Other Citations |
Gowli Buddanna v. CIT [1966] 60 ITR 293 (SC)
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| Laws Involved |
Wealth-tax Act, 1957
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| Sections |
3
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