Gift under Income-tax Act means ordinary transfer without consideration; deemed gift definition under Gift-tax Act cannot be imported.

Section 49(1)(ii) of the Income-tax Act uses the word "gift" in its ordinary sense and does not extend to a deemed gift under the Gift-tax Act for determining cost of acquisition. Because the Income-tax Act does not define "deemed gift" and the two enactments operate in different fields, the artificial meaning from the Gift-tax Act cannot be imported into sections 47(iii) and 49(1)(ii). Applying binding jurisdictional precedent, the tribunal rejected the assessee's attempt to treat the relinquishment as a deemed gift and upheld the computation adopted by the tax authorities.

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Issues: Whether the expression "gift" in section 49(1)(ii) of the Income-tax Act, 1961, can be construed to include a deemed gift so as to adopt the value under the Gift-tax Act for computing the cost of acquisition.

Analysis: Sections 47(iii) and 49(1)(ii) of the Income-tax Act, 1961 deal with transfer of a capital asset under a gift or a will, but the Act does not define "deemed gift". The expression "gift" occurring in the Income-tax Act cannot be supplied with the artificial meaning found in the Gift-tax Act, because the two statutes operate in different fields and are not in pari materia. The binding jurisdictional precedent held that the word "gift" in section 47(iii) of the Income-tax Act means a transfer made without consideration in its ordinary sense, and that the definition under the Gift-tax Act cannot be imported for construing the same word in the Income-tax Act.

Conclusion: The assessee's claim that the relinquishment should be treated as a deemed gift under the Gift-tax Act was rejected, and the computation made by the tax authorities was upheld.

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