Hindu widow's enlarged ownership in joint family property; relinquishment treated as a taxable gift under gift-tax law.

A Hindu widow in possession of her deceased husband's undivided interest in joint family property at the commencement of the Hindu Succession Act, 1956 acquires full ownership under section 14(1). Possession and the right of alienation were sufficient even without partition. On that footing, her relinquishment of the enlarged interest in favour of other family members amounted to a transfer attracting gift-tax. The taxable gift treatment was sustained.

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Issues: Whether the assessee's relinquishment of her undivided share in Hindu undivided family property amounted to a taxable gift under the Gift-tax Act.

Analysis: On the death of the assessee's husband, his interest in the joint family property devolved on her under the Hindu Women's Right to Property Act, 1937, subject to a limited estate and a right to claim partition. On the commencement of the Hindu Succession Act, 1956, section 14(1) enlarged the interest of a female Hindu in property possessed by her into full ownership. The assessee's possession of the undivided share was sufficient notwithstanding the absence of partition, and the existence of a right of alienation supported that possession. The relinquishment of such full ownership in favour of the others in the family therefore amounted to a transfer attracting gift-tax.

Conclusion: The relinquishment constituted a taxable gift and was rightly brought to tax.

Final Conclusion: The appeal failed, and the gift-tax assessment was sustained.

Ratio Decidendi: Where a Hindu widow is in possession of her deceased husband's undivided interest in joint family property at the commencement of the Hindu Succession Act, 1956, section 14(1) enlarges that interest into full ownership, and relinquishment of that interest constitutes a taxable gift.

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