https://www.taxtmi.com/caselaws?id=66527 An arrangement described as a partition was treated on its substance as a family settlement where the recitals showed a bona fide effort to preserve family peace and maintain the family line. The Tribunal held that a family settlement may be valid even if one party lacked an enforceable pre-existing legal right, provided the arrangement was made to resolve or avoid disputes and secure harmony. On those facts, the deed was not a gratuitous transfer and therefore did not constitute a taxable gift under the Gift-tax Act; the addition made on that basis could not stand. en-us Mon, 09 Jul 1990 00:00:00 +0530 Sat, 26 Feb 2011 13:17:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66527 An arrangement described as a partition was treated on its substance as a family settlement where the recitals showed a bona fide effort to preserve family peace and maintain the family line. The Tribunal held that a family settlement may be valid even if one party lacked an enforceable pre-existing legal right, provided the arrangement was made to resolve or avoid disputes and secure harmony. On those facts, the deed was not a gratuitous transfer and therefore did not constitute a taxable gift under the Gift-tax Act; the addition made on that basis could not stand. Case-Laws Income Tax Mon, 09 Jul 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66527