1967 (1) TMI 36

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....roperty? (2) Whether, on the division of the aforesaid amount of Rs. 91,668 between Ghasiram Agarwalla and his three sons, there was a gift of Rs. 68,751 by Ghasiram Agarwalla to his three sons which was assessable to gift-tax?" The facts of the case which are beyond doubt may be briefly stated. The rice mill called Sagarmal Ghasiram Rice Mill of Ramgiya was owned by a Hindu undivided family governed by the Mitakshara school of Hindu law of which Sagarmal Agarwalla was the karta. Subsequently, there was a partial partition in this family as a result of which the rice mill was taken out of the joint family assets and a partnership firm consisting of Sagarmal Agarwalla, his son, Sri Ghasiram Agarwalla, and three sons of Ghasiram Agarwal....

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.... transfer by Ghasiram to his three sons was rightly treated as a gift and assessed as such by the Gift-tax Officer. This decision was confirmed by the Income-tax Appellate Tribunal which has made this reference to us in this case. The Tribunal also held that whatever might have been the position under the Hindu law before the enactment of the Hindu Succession Act, after the coming into operation of the said Act, the estate inherited under section 8 would be absolute property of the inheritor and could not be regarded as ancestral property in his hands. In this view of the matter the Tribunal upheld the decision of the authorities below. Reference has been made to article 223 of Mulla's Hindu Law, 13th edition. This article dealt with anc....