TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the amount inherited by the assessee under section 8 of the Hindu Succession Act, 1956 was his absolute property. (ii) Whether the division of that amount among the assessee and his sons constituted a taxable gift.
Issue (i): Whether the amount inherited by the assessee under section 8 of the Hindu Succession Act, 1956 was his absolute property.
Analysis: The property standing to the credit of the deceased was found to be his separate or self-acquired property. Property of that character devolves on the heirs under section 8 of the Hindu Succession Act, 1956 and does not pass by survivorship. The succession under the statute leaves the inherited property as the absolute property of the heir and does not convert it into ancestral property in the hands of the inheritor.
Conclusion: The amount inherited by the assessee was his absolute property.
Issue (ii): Whether the division of that amount among the assessee and his sons constituted a taxable gift.
Analysis: Once the inherited amount was the assessee's absolute property, his act of allowing three-fourths of it to be credited to his sons amounted to a transfer of property by him without consideration. Such transfer satisfied the character of a gift and was liable to be brought to gift-tax.
Conclusion: The division constituted a taxable gift.
Final Conclusion: The reference was answered in favour of the Revenue, and the assessment of gift-tax on the transfer was upheld.
Ratio Decidendi: Property inherited under section 8 of the Hindu Succession Act, 1956 in respect of separate or self-acquired property remains the absolute property of the heir and, if transferred to others without consideration, is liable to gift-tax.
TaxTMI 
TaxTMI 
