Gift-tax treatment of property thrown into Hindu family hotchpotch: not a taxable gift under the Act.

Throwing self-acquired property into the common stock of a Hindu undivided family does not amount to a taxable gift under the Gift-tax Act. Applying the same principle stated in the connected matter, the Supreme Court treated the transfer into the family hotchpotch as outside the scope of "gift" for gift-tax purposes. The reference was answered in the negative, and the assessee succeeded.

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Issues: Whether the transfer of self-acquired property by throwing it into the common stock of a Hindu undivided family attracted liability under the Gift-tax Act.

Analysis: The question was answered by applying the same legal principle previously stated in the connected matter relied upon by the Court. The act of throwing self-acquired property into the hotchpotch of the joint family was treated as not amounting to a gift within the meaning of the Gift-tax Act.

Conclusion: The reference was answered in the negative. The Gift-tax Act was not attracted to the amount so thrown into the family hotchpotch, and the answer was in favour of the assessee.

Ratio Decidendi: Throwing self-acquired property into the common stock of a Hindu undivided family does not constitute a taxable gift under the Gift-tax Act.

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