TaxTMI 
TaxTMI 
2001 (3) TMI 28
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....e Commissioner of Gift-tax (Appeals) (in short, "the Commissioner"), there was a gift in terms of section 4(1)(c) of the Act, but the Tribunal held otherwise. The dispute arises in the following background: The assessee, an individual, was required by the Assessing Officer to show as to why the memorandum entered into on July 7, 1979, stipulating arrangement of properties settled amongst various co-owners should not be covered by section 4(1)(c) of the Act. According to the Assessing Officer, in terms of the memorandum of agreement, the assessee surrendered his rights as co-owner in respect of properties at two places in New Delhi. The assessee's stand was that the settlement arrived at between the co-owners was bona fide and as such ....
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.... a decision of the apex court in Kale v. Deputy Director of Consolidation, AIR 1976 SC 807, to substantiate the plea. Learned counsel for the assessee, on the other hand, submitted that a factual finding has been recorded by the Tribunal that the arrangement was bona fide. That being the position, no question of law arises. It is to be noted that an application in terms of section 26(2) of the Act was rejected by the Tribunal on the ground that the findings of fact have been recorded giving rise to no question of law. Section 4(1)(c) of the Act essentially reads as follows: "4. Gifts to include certain transfers.-(1) For the purposes of this Act,-... (c) where there is a release, discharge, surrender, forfeiture or abandonment of a....
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....nly, sincerely. According to Black's Law Dictionary, it means in or with good faith; honestly, openly and sincerely, without deceit or fraud; truly, actually, without simulation or pretence; innocently, in the attitude of trust and confidence. According to Wharton's Law Lexicon, bona fide means good faith, implying the absence of all fraud, unfair dealing or acting; whether it consists in simulation or dissimulation. As has been rightly submitted by learned counsel for the assessee, the question to be decided on the facts is whether the arrangement was bona fide. The Tribunal after referring to various aspects came to hold that the arrangement was bona fide. The conclusion is essentially factual. It could not be shown to us by learned co....
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....er for the purpose of the record or for information of the court for making necessary mutation. In such a case the memorandum itself does not create or extinguish any rights in immovable properties and, therefore, does not fall within the mischief of section 17(2) (sic) (section 17(1)(b)?) of the Registration Act and is, therefore, not compulsorily registrable; (5) The members who may be parties to the family arrangement must have some antecedent title, claim or interest even a possible claim in the property which is acknowledged by the parties to the settlement. Even if one of the parties to the settlement has no title but under the arrangement the other party relinquishes all its claims or titles in favour of such a person and acknowle....