1979 (12) TMI 42

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....of them is a minor daughter by name Miss Nourby. The income arising from the properties transferred to the minor daughter of the assessee was included in the computation of the total income of the assessee by invoking s. 64(iv) of the I.T. Act, 1961. The assessee objected to the same and, against the order of the ITO, an appeal was preferred to the AAC contending, (1) that the nationals of Pondicherry are to be governed either by the personal law or by the French Civil Code and the assessee, though a Muslim, could adopt the French Civil Code and be governed by it; and (2) that the document dated September 21, 1963, is not a gift but a transfer of property due to the descendants and the assessee and her husband had disposed of the properties....

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....were transferred without adequate consideration, the income arising therefrom was rightly included in the income of the assessee under s. 64(iv) of the I.T. Act, 1961. On an application made by the assessee under s. 256(1) of the I.T. Act, 1961, the Tribunal has referred the following question of law for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the transaction evidenced by document dated September 21, 1963, is a transfer without consideration and the income arising from properties transferred can be included in the computation of the total income of the assessee under section 64(iv) of the Income-tax Act for the assessment years 1964-65 to 1967-68 ? "....

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....eded to state in paragraphs 12 and 13 of its order as follows: " 12. It is clear that these sections provide that the so-called partition deed must be in accordance with the requirements of a gift deed and must comply with the formalities, conditions and rules laid down for donation inter vivos and must only include things which the donor possesses at the time of execution of the document. The section characterises the person effecting the partition as donor... 13. From the above, analysis the so-called anticipated partition is nothing but a donation of the properties by the appellant and her husband in favour of the minor daughter. There is nothing to indicate that the minor daughter had any antecedent title or pre-existing right bef....