1997 (7) TMI 58

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....elling, renovating and carrying out certain repairs of a house of which he was 1/3rd owner and the remaining 2/3rds was owned by his two brothers. The house is obviously an ancestral house. The assessee was asked by the Revenue to provide evidence in this connection and he was further asked as to why an amount of Rs. 40,520 representing 2/3rds of Rs. 60,732 spent by the assessee on renovating the house should not be treated as a gift in favour of his brothers. The assessee could not furnish any plausible explanation and thereafter the Gift-tax Officer treated Rs. 40,522 as deemed gift. Aggrieved by the order passed by the Gift-tax Officer, the assessee preferred an appeal before the Appellate Assistant Commissioner who accepted the argument....

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.... The term "gift" is defined in section 2(xii) of the Gift-tax Act to mean the transfer by one person to another of any existing movable or immovable property made voluntarily and without consideration in money or money's worth, and includes the transfer or conversion of any property referred to in section 4, deemed to be a gift under that section. Although under section 2(xii) of the Gift-tax Act, the expression "transfer of property" has also been given an extended meaning so as to cover certain transactions which would not ordinarily be comprised within that term, it was held by the Supreme Court in the case of Goli Eswariah v. CGT [1970] 76 ITR 675 that the act of conversion of separate property by a coparcener of a Hindu undivided famil....