1971 (9) TMI 61 - SUPREME COURT

Whether there was gift by N. S. Getti Chettiar of ₹ 2,46,377 on which he is liable to pay Gift-tax ?

Held that:- the word "disposition", in the context, means giving away or giving up by a person of something which was his own, "conveyance" means transfer of ownership, "assignment" means the transfer of the claim, right or property to another, "settlement" means settling the property, right or claim--conveyance or disposition of property for the benefit of another "delivery" contemplated therein is the delivery of one's property to another for no consideration and "payment" implies gift of money by someone to another. We do not think that a partition in a Hindu undivided family can be considered either as "disposition" or "conveyance" or "assignment" or "settlement" or "delivery" or "payment" or "alienation" within the meaning of those words in section 2(xxiv).

The "transaction" referred to in clause (d) of section 2(xxiv) takes its colour from the main clause, viz., it must be a transfer of property in some way. This conclusion of ours gets support from sub-clauses (a) to (c) of clause (xxiv) of section 2, each of which deals with one or the other mode of transfer. If Parliament intended to bring within the scope of that provision partitions of the type with which we are concerned, nothing was easier than to say so. In interpreting tax laws, courts merely look at the words of the section. If a case clearly comes within the section, the subject is taxed and not otherwise. We agree with the view taken by the High Court of Madras, the Tribunal and the Appellate Assistant Commissioner that the assessee made no "gift" under the partition deed in question.