https://www.taxtmi.com/caselaws?id=9110 An unrestricted power of revocation reserved by the settlor prevents a trust settlement from constituting a taxable gift under the Gift-tax Act because the statutory concept of a gift requires a voluntary transfer without consideration and a sufficient divestment of property. Where the settlor can revoke the trust at any time, there is no complete or irrevocable divestment, so the trust does not answer the legal meaning of a gift for gift-tax purposes. Section 6(2) does not alter that position because it is confined to gifts that are not revocable for a specified period. Accordingly, such a revocable trust is outside gift-tax liability. en-us Mon, 17 Dec 1973 00:00:00 +0530 Fri, 19 Jun 2009 16:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9110 An unrestricted power of revocation reserved by the settlor prevents a trust settlement from constituting a taxable gift under the Gift-tax Act because the statutory concept of a gift requires a voluntary transfer without consideration and a sufficient divestment of property. Where the settlor can revoke the trust at any time, there is no complete or irrevocable divestment, so the trust does not answer the legal meaning of a gift for gift-tax purposes. Section 6(2) does not alter that position because it is confined to gifts that are not revocable for a specified period. Accordingly, such a revocable trust is outside gift-tax liability. Case-Laws Income Tax Mon, 17 Dec 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9110