| Case ID |
f9ac816f-0da8-47f8-97ac-8702ee35a3e4 |
| Body |
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| Case Number |
CASE REFERRED No. 14 OF 1964 |
| Decision Date |
Apr 14, 1967 |
| Hearing Date |
|
| Decision |
The court held that the gifts made by the members of a Hindu undivided family (HUF) to their sons were not valid under the Gift-tax Act, 1958. It was established that a karta of an HUF cannot make gifts of property to anyone except in circumstances recognized under Hindu law. The court emphasized that such gifts do not involve a transfer of property, which is a fundamental aspect of a gift. Consequently, the tribunal's decision to reverse the earlier assessment was upheld, and it was concluded that no gifts were made to attract the provisions of the Act. |
| Summary |
In the case referred to as 'CASE REFERRED No. 14 OF 1964', the High Court examined the legality of gifts made by members of a Hindu undivided family under the Gift-tax Act, 1958. The case involved the two brothers who made gifts of immovable properties to their sons, some of whom were minors during the assessment year 1958-59. The Gift-tax Officer issued notices and assessed the gifts under the Act; however, the Appellate Tribunal reversed this decision. The court concluded that a karta of an HUF has limited rights to gift property, primarily under Hindu law. The judgment clarified that the partition of joint family property does not constitute a transfer in the legal sense, thus reinforcing the decision in the earlier case of CIT v. Keshavlal Lallubhai Patel. This ruling is significant for understanding the constraints on property transactions within HUFs and the application of the Gift-tax Act. Keywords include Hindu undivided family, Gift-tax Act, property gifts, legal necessity, tax assessment, and joint family property. |
| Court |
High Court
|
| Entities Involved |
Not available
|
| Judges |
P. Jaganmohan Reddy, C.J.,
Krishna Rao, J
|
| Lawyers |
C. Kondaiah,
T.S. Narsing Rao
|
| Petitioners |
Not available
|
| Respondents |
P. Hanumanthappa
|
| Citations |
1968 SLD 205,
(1968) 68 ITR 363
|
| Other Citations |
CIT v. Keshavlal Lallubhai Patel [1965] 55 ITR 637 (SC)
|
| Laws Involved |
Gift-tax Act, 1958
|
| Sections |
2(xii),
13(2),
15(2),
15(5)
|