TMI Blog2001 (3) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(xii) and 2(xxiv)(a) of the Gift-tax Act when the deceased karta of the family created a trust dated June 30, 1964, in favour of the four beneficiaries who were members of the Hindu undivided family?" The dispute relates to the assessment year 1966-67. The factual background in a nutshell is as follows: Chandmal Gauri Shankar (hereinafter referred to as "the assessee") was a Hindu undivided family (in short "the HUF"). The Gift-tax Officer issued notice under section 16 of the Act, as it was noticed by him that the asses see had gifted three properties to a trust for the benefit of its members during the assessment year in question. Such transfers were made on July 15, 1965, for the value of Rs. 75,000. The assessee did not file any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e trust deed was void or voidable but by considering whether the trust deed has been assented to by all the members of the family by their having elected to abide by it. Looking at it from this point of view it is seen that not only the author but also the members as well as the three beneficiaries have returned the income from these properties based on the trust deed which shows their factual assent to the transfer of the property, of the Hindu undivided family to the trust. It is also seen that the property has been shown as trust property in the estate duty assessment of the two ladies as well as the wealth-tax assessment of Lakshmi Narain while the trust itself has been assessed separately. The only major coparcener other than the autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. It was held that the provisions of section 2(xii) and section 2(xxiv)(a) had application to the facts of the case. On being moved for a reference, the question as set out above, has been referred for the opinion of this court. We have heard learned counsel for the Revenue. There is no appearance on behalf of the assessee in spite of notice. Learned counsel for the Revenue submitted that, in view of the conclusions arrived at in the income-tax proceedings the Tribunal was justified in its conclusion. The extracted portion of the Tribunal's order, so far as it relates to the income-tax proceedings, clearly shows that the trust deed was a valid one and that being the position there was a transfer in terms of section 2(xii) read with s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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