| Case ID |
38044a12-de15-41fa-a0ad-d0b496e43ea7 |
| Body |
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| Case Number |
GT REFERENCE No. 2 OF 1967 |
| Decision Date |
Jul 19, 1977 |
| Hearing Date |
Jul 18, 1977 |
| Decision |
The Tribunal held that the execution of the deed of appointment or the deed of poll did not result in any transfer of interest in the trust property nor did it in any way affect or interfere with the operation of the clauses of the trust deeds. The deed of appointment merely defined the donee and did not cause the gift. The trust deed amounted to a gift by virtue of section 2(xxiv)(a) and there was no question of taxing it in the year under appeal even if it amounted to a gift under section 2(xxiv)(c) as the first occasion to tax it excluded all the other subsequent occasions to do so. The exercise of the power of appointment by the assessee did not amount to a second and distinct gift of the property and it was not covered by sub-clause (c) of section 2(xxiv). The Tribunal also concluded that the deed of release or relinquishment did not amount to transfer of property nor a gift. |
| Summary |
This case revolves around the interpretation of the Gift-tax Act, 1958, specifically concerning the definitions of 'gift' and 'transfer of property.' The central issue was whether the unilateral actions of the assessee, Mrs. Jer Mavis Lubimoff, in executing a deed of poll and a deed of release, constituted a taxable gift. The court concluded that a gift requires a bilateral transaction, and since the deeds were executed unilaterally, they did not meet the criteria for a taxable gift under the Act. The decision emphasized the importance of the nature of the power of appointment and clarified the distinctions between general and special powers of appointment. The ruling is significant for taxpayers and legal practitioners as it sets a precedent regarding the taxation of gifts and the interpretation of unilateral acts in the context of the Gift-tax Act. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
Kantawala, C.J.,
Tulzapurkar, J.
|
| Lawyers |
R.J. Joshi,
V.J. Pandit,
R.J. Kolah,
S.E. Dastur,
K.J. Khambatta
|
| Petitioners |
Commissioner of Gift-tax
|
| Respondents |
Mrs. Jer Mavis Lubimoff
|
| Citations |
1978 SLD 777,
(1978) 114 ITR 90
|
| Other Citations |
CGT v. N.S. Getti Chettiar [1971] 82 ITR 599 (SC),
Edulji Framroz Dinshaw v. Cawasji Jehangir [1955] 57 Bom LR 763 (Bom.),
Goli Eswariah v. CGT [1970] 76 ITR 675 (SC),
IRC v. Buchanan [1958] 34 ITR 173 (CA)
|
| Laws Involved |
Gift-tax Act, 1958
|
| Sections |
2(xii),
2(xxiv)
|