Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2008 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (2) TMI 818 - HC - Income TaxWhether, on the facts and in the circumstances of the case, the Tribunal was right in holding that there was no element of gift in transfer of half portion of the property owned by the assessee independently without having any nexus with HUF in favour of her daughter without any consideration when the other half of the portion had been transferred to the same transferee for a consideration of ₹ 18 lakhs ? Held that:- The relationship between the assessee and her daughter has been accepted by the Revenue being mother and daughter. It is also clear from the records that the daughter of the assessee had dragged her mother to a court of law for a partition and that suit ultimately ended into a compromise, whereby half share of house No. 646 had fallen to the share of the daughter of the assessee. In the said compromise the other co-owners had also given their no objections for entering into a compromise. Since it was a family dispute and ultimately good sense prevailed amongst them, thus this compromise was entered into. The other co-owners specifically mentioned in their no objections filed before the civil court that since all are well off and, therefore, they are not interested to have their share in the property. In such an event, the circumstances under which half of the share fell to the daughter of the assessee can only be said to be a family arrangement, but it cannot be said that such a device was adopted by the assessee so as to avoid payment of gift-tax. In fact, the Tribunal has also proceeded on the aforesaid ground only and found that for such a transaction no gift tax could have been levied. We are in full agreement with the findings recorded by the Tribunal and there is no reason to doubt the correctness of the compromise decree entered into between the parties. Appeal dismissed.
|