Book entries alone do not complete a valid gift of movable property without delivery, divestment of control, and acceptance.

A valid gift of movable property requires voluntary transfer without consideration, together with delivery or another mode of transfer that places the property beyond the donor's control, and acceptance by or on behalf of the donee. Mere debit and credit entries in the donor's own books do not divest dominion over the money or amount to delivery under the Transfer of Property Act. Where the money remains under the donor's control and acceptance by the donees is not satisfactorily shown, especially in the case of minors, the gift is invalid.

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Issues: Whether a gift of money made only by debit and credit entries in the donor's own books, without registered instrument or delivery putting the money beyond the donor's control, constituted a valid gift.

Analysis: A gift of movable property under section 122 of the Transfer of Property Act, 1882 requires transfer made voluntarily, without consideration, and accepted by or on behalf of the donee. Under section 123 of that Act, movable property may be transferred by registered instrument or by delivery. Applying the principle reflected in section 33 of the Indian Sale of Goods Act, 1930, delivery means placing the property in the possession or control of the transferee or a person authorised on his behalf. Mere entries in the donor's own books did not divest the donor of dominion over the money, did not place it beyond his use or recall, and there was also no satisfactory material to show acceptance by the donees, particularly the minors.

Conclusion: The gift was invalid; the question referred was answered in the affirmative against the assessee.

Final Conclusion: Transfer entries in the donor's own books, without effective delivery or divestment of control and without proved acceptance, are insufficient to constitute a valid gift of movable property.

Ratio Decidendi: A valid gift of movable property is not created by unilateral book entries in the donor's own accounts unless the property is delivered so as to pass beyond the donor's dominion and is accepted by or on behalf of the donee.

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