Gift-tax liability arises when a sole surviving coparcener treats ancestral property as self-acquired and makes gifts. When only one coparcener of a Mitakshara HUF remains, ancestral property held by that coparcener is treated as equivalent to self-acquired property, and gifts made by that sole coparcener are liable to gift-tax. This stance is to be distinguished from HUFs with multiple coparceners, where the Karta's power to make gifts is limited and different legal constraints may apply; factual circumstances suggesting a sham gift or the existence of a potential heir may restrict gifting power.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Gift-tax liability arises when a sole surviving coparcener treats ancestral property as self-acquired and makes gifts.
When only one coparcener of a Mitakshara HUF remains, ancestral property held by that coparcener is treated as equivalent to self-acquired property, and gifts made by that sole coparcener are liable to gift-tax. This stance is to be distinguished from HUFs with multiple coparceners, where the Karta's power to make gifts is limited and different legal constraints may apply; factual circumstances suggesting a sham gift or the existence of a potential heir may restrict gifting power.
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