TaxTMI 
TaxTMI 
1969 (1) TMI 21
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....eas the grantor has decided to grant and to make a gift to the donee of the properties described in schedule A hereunder absolutely in severalty for ever subject to payment by the donee of a sum of rupees twenty thousand only to the said grantor such payment to be made within two years from the date of the execution of these presents and also of the property described in schedule B hereunder absolutely and also of an undivided equal fourth part of share of the property mentioned in schedule C absolutely AND WHEREAS the donee has agreed to accept the said gift and to pay the said sum of rupees twenty thousand recited above." For the purpose of assessment to gift-tax, the properties gifted were valued at Rs. 4,54,700. This reference arises o....
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....ucted from the total value of each of these gifts. The Tribunal was of the view that whether it was a charge on the schedule A properties or an onerous burden attached to the gift, the amount of Rs. 20,000 was to be deducted from the value of the properties comprised in each of these gifts. In those circumstances, the Tribunal directed that the sum of Rs. 60,000 be deducted from the total valuation of the property valued at Rs. 4,54,700 and reduced it to Rs. 3,94,700. On an application being made, the Tribunal has referred to this court under section 26(1) of the Gift-tax Act, 1958, the following question: " Whether, on the facts and circumstances of the case, the sum of Rs. 60,000 was deductible out of the total value of ths gifts ? " S....
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....uch the question of deduction of the sum of, Rs. 60,000 from the total valuation does not arise. Dr. D. Pal, learned advocate appearing for the on the other hand, contended that in construing. these deeds it has to be borne in mind that two different items of property were being given to each of the three donees, but it was only in respect of one of the items of property that the recital stated that the gift was being made subject to payment by the donee of the sum of Rs. 20,000. The recital states that " whereas the grantor is seized and possessed of considerable properties and he is unable to manage and control his said properties on account of his growing ill health ... and make a gift to the donee of the schedule A property subject to p....
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....y necessary to consider whether this was a condition precedent or a condition subsequent. But the the question is what is the value of the gift ? It is true that there is no defeasance clause. It is also true that by the express terms of the gift it has excluded creation of a trust in favour of the grantor. But it has to be borne in mind that the gifts have been made subject to the payment of Rs. 20,000 as stated both in the recital clause as well as in the operative portion. It has further to be borne in mind that there are other properties gifted by the same donor to the same donee by the same instrument which are not subject to the said payment of Rs. 20,000. We must also bear in mind that in the recital portion it has been stated that t....