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of <h1>Tribunal upholds validity of gift from HUF to relative, impacting net wealth calculation</h1> The Tribunal ruled in favor of the assessee, holding that the gift made by the karta of the Hindu Undivided Family (HUF) to a relative was valid. It was ... Net Wealth Issues:1. Validity of a gift made by the karta of an HUF to a relative or stranger.2. Inclusion of the value of gifted property in the net wealth of the assessee.3. Interpretation of the rights of a sole surviving coparcener to dispose of coparcenary property.Detailed Analysis:1. The case involved a dispute regarding the validity of a gift made by the karta of a Hindu Undivided Family (HUF) to a relative. The Assessing Officer held that the gift was not valid as the donee was considered a stranger to the family after a partition. The Appellate Authority Commissioner (AAC) upheld this decision. The key argument was whether the karta had the authority to gift HUF property to a relative or a stranger post-partition.2. The Assessing Officer included the value of the gifted property in the net wealth of the assessee based on the premise that the gift was not valid. The main issue was whether the value of the gifted property should be considered part of the assessee's net wealth, impacting the tax liability. The lower authorities had upheld the inclusion of the property in the net wealth.3. The Tribunal considered the rights of a sole surviving coparcener to dispose of coparcenary property. Citing legal precedents, it was established that when the assessee became the sole surviving coparcener after a partition, he had the absolute right to gift or dispose of the property as if it were his separate property. The Tribunal referred to legal provisions and case laws to support the conclusion that the gift made by the assessee was valid, and the value of the gifted property should not be included in the net wealth calculation.In conclusion, the Tribunal allowed the appeal, ruling in favor of the assessee based on the interpretation of the rights of a sole surviving coparcener to gift coparcenary property. The judgment emphasized the legal authority of a sole surviving coparcener to dispose of such property and upheld the validity of the gift made by the assessee, directing the exclusion of the gifted property's value from the assessee's net wealth.
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