https://www.taxtmi.com/caselaws?id=26123 A bona fide family arrangement made to settle existing or possible family disputes is binding even where one party may have a better legal title, and it is not treated as a taxable transfer under the Gift-tax Act when the compromise is fair and voluntary. On the facts described, the registered family settlement was supported by family discord and panchayat intervention, so the property redistribution did not attract gift-tax. Because the arrangement was not a transfer in the nature of a gift, the consequential clubbing of the minor son's income under section 64(iii) of the Income-tax Act also did not apply. en-us Wed, 22 Jan 1986 00:00:00 +0530 Wed, 03 Feb 2010 10:12:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26123 A bona fide family arrangement made to settle existing or possible family disputes is binding even where one party may have a better legal title, and it is not treated as a taxable transfer under the Gift-tax Act when the compromise is fair and voluntary. On the facts described, the registered family settlement was supported by family discord and panchayat intervention, so the property redistribution did not attract gift-tax. Because the arrangement was not a transfer in the nature of a gift, the consequential clubbing of the minor son's income under section 64(iii) of the Income-tax Act also did not apply. Case-Laws Income Tax Wed, 22 Jan 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26123