TaxTMI 
TaxTMI 
1971 (11) TMI 9
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....pplication made by the Commissioner of Wealth-tax, U P. 1, Lucknow, under section 27(1) of the Wealth-tax Act, 1957. The question of law referred to us is: "Whether, on the facts and in the circumstances of the case, the sum of Rs. 2 lakhs was rightly excluded from the computation of the assessee's wealth?" The facts leading to the reference are that there was a Hindu undivided family con....
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....e Hindu undivided family. Subsequently, on attaining majority, Om Prakash and Laxmi Prakash also ratified the gift. For the assessment year 1964-65 the Wealth-tax Officer rejected the assessee's claim for excluding the amount of Rs. 2 lakhs from the wealth of the Hindu undivided family on the ground that the transfer did not amount in law to a gift to the minor son, Tej Prakash. The appeal file....
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....d family had been debited and that of Tej Prakash credited with a sum of Rs. 2 lakhs on October 6, 1954. On this amount no interest was ever paid to Tej Prakash except in October 1963, when a sum of Rs. 12,852 was credited by way of interest in the account of Tej Prakash. Some immovable properties in the name of Tej Prakash were purchased later on during the minority of Tej Prakash, out of the amo....
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....ntries crediting the amount of Rs. 2 lakhs in the assessee's own books in the name of Tej Prakash cannot amount to a gift of the same amount. The circumstances that no interest was credited to the assessee for a number of years and the money was available for the business of the Hindu undivided family also show that there was no intention of making the transfer out of the Hindu undivided family fu....