2001 (8) TMI 109

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....iance with the provisions of section 123 of the Transfer of Property Act, 1882. The Assistant Commissioner and the Tribunal took the same view and thereafter the following question of law was referred to the High Court (see [1985] 156 ITR 714) by the Tribunal : "Whether, on the facts and circumstances of the case, the Tribunal was justified in law in holding that no valid gift of out-houses of the building named as 'Deep Shikha' was made by the assessee to his wife in terms of the Gift-tax Act, 1958 ?" By the impugned judgment the High Court answered the question of law in favour of the respondent. It came to the conclusion that the definition of the word "gift" under the Gift-tax Act was wider than the definition of "gift" in the Tra....

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....re property is transferred otherwise than for adequate consideration, the amount by which the value of the property as on the date of the transfer and determined in the manner laid down in Schedule II exceeds the value of the consideration shall be deemed to be a gift made by the transferor : Provided that nothing contained in this clause shall apply in any case where the property is transferred to the Government or where the value of the consideration for the transfer is determined or approved by the Central Government or the Reserve Bank of India ; (b) where property is transferred for a consideration which, having regard to the circumstances of the case, has not passed or is not intended to pass either in full or in part from the t....

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....rty which in certain circumstances is to be regarded as a gift. For instance, in cases falling under clause (a) of section 4 where the property is transferred for less than adequate consideration such a transfer would not be regarded as a gift under the Transfer of Property Act but would be regarded as a gift under the Gift-tax Act. What is, however, important is that there has to be a transfer of property and a transfer by reason of section 17 of the Registration Act can only be by way of a registered document. The respondent seeks to bring its case within the provisions of clause (c) or (d) of section 4. There can be no doubt in cur mind that surrender or forfeiture of an interest in immovable property as contemplated by clause (c) of ....