1981 (1) TMI 19

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....er to the above question is in the affirmative, whether the provisions of section 10 could be applied in, respect of the said sums of Rs. 31,000 and Rs. 51,000 by reason only of their having been invested in the partnership in which the donees and the deceased were partners under annexure 'C' ? Reference arises out of E.D. assessment consequent on the demise of one Shri Puranmal Gattani on.. February 17, 1961. He was a self-made man carrying on business and acquired properties without the aid of any ancestral nucleus. On May 28, 1952, he gave a sum of Rs. 31,000 to one of his sons, Shri Narayandas, who, on receipt of the amount, executed a document styled as relinquishment deed on a stamp paper of Rs. 500. The schedule attached to that d....

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.... In an appeal carried at the instance of the accountable person, the Appellate Controller confirmed that decision and consequently, the accountable person filed a second appeal before the Tribunal. Accepting the contention raised on his behalf that under the circumstances the transaction was not a " gift " at all, the appeal came to be allowed. On the second question, however, the Tribunal held in favour of the Revenue. Inasmuch as on the first question itself the Revenue lost, an application was filed for making a reference to the High Court and that is how the matter is before us. After hearing the learned counsel for the Department as well as the assessee, it seems to us that the transaction evidenced by the two documents styled as....

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....ies, but half of the share of deceased Puranmal in the said property. Now, the concept of gift is that it has to be without consideration whatsoever excepting the consideration of love and affection in certain cases. The moment it is demonstrated that there is some consideration for the transfer, the transaction will be anything but a gift. The consideration can be the settling of a future probable dispute or even getting an admission from the party which will preclude the raising of a dispute. The Tribunal considering this principle about " gift " has arrived at a conclusion that there is a certain amount of mutuality in the transaction and that it was not without consideration, the consideration being, to put the affairs beyond the pal....