TaxTMI 
TaxTMI 
1984 (8) TMI 97
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....neficiaries who would be entitled to the said benefits after his life time. The persons to whom the interest of the assessee to released was to go were his daughter and his sons. The value of such life interest was worked out to be Rs. 46,161 as per the assessee's letter dt. 6th Nov., 1978. The GTO regarded the above release of his life interest in the waqf as a deemed gift within the meaning of cl. (c) of sub-s. (1) of s. 4 of the GT Act, 1958. The value of the gift was, however, taken by the GTO at Rs. 64,454 as against the declaration of Rs. 46,861 made by the assessee. 2. The assessee challenged the aforesaid assessment before the ld. AAC who relying on the decision of the Hon'ble Bombay High Court in the case of CGT vs. Mrs. Jer Mar....
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.... clearly shows that it consists of two parts. In the first part certain unilateral actions which result in benefiting one person, while causing detriment to the other person, without any consideration have been classed as gift so even though in terms of the Transfer of Property Act, they are not gifts. Thus, release or surrender or abandonment of an interest in property by a person is deemed to be a gift made by the person who released, surrendered or abandoned the aforesaid property. To the aforesaid general rule, an exception has been built in the second part of the clause, which provides that, if the aforesaid release, etc., is shown to have been done bona fide and if the GTO is satisfied about the aforesaid nature of the release, etc., ....
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....for the Revenue to urge the question of bona fides in terms of cl. (c) of sub-s. (1) of s. 4 of the GT Act on the short ground that the Tribunal had held in the said case that the gift was bona fide. The following observations of their Lordships, at p. 109 are relevant. After quoting cl. (c) of sub-s. (1) of s. 4 their Lordships observed as follows: "The answer to such a question will depend upon the finding as to whether the GTO was satisfied that the deed of release, surrender, etc. has not been found to have been bona fide. In fact, this is a question of fact, on which the Tribunal has given a clear and unequivocal finding that it is impossible to come to the conclusion that the deed of release is not executed bona fide. Such a findin....
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....st in property was done. If the effect of his release was natural with regard to the taxation effects, prima facie, the release would be bona fide. Otherwise, it might be open to the GTO or the AAC of GT to hold, on the facts as found, that the release was not bona fide and that it had been made for an oblique motive including the avoidance of tax. In this connection, it may be useful to refer to the statement of objects/reasons for the introduction of the GT Bill in the Lok Sabha on 28th Feb., 1958. The same reads as follows: "The objects of this Bill is to levy a tax on gifts made by individuals, HUF, companies, firms and AOP. Gift from one person to another provide a convenient means of avoiding or reducing liability to Estate Duty, I....