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2001 (10) TMI 86 - SUPREME COURTWhether there was a deemed gift taxable under the Gift-tax Act, 1958, for the assessment year 1970-71 in respect of arrangement in pursuance of the agreement dated November 21, 1969, between the assessee and Khoday Industries Pvt. Ltd. ? Held that:- In the present case, the gift was revocable/terminable with six months' notice. Thus, it was not revocable for a specified period which was less than a year, namely, six months. The capitalised value has to be fixed under rule 1l(l) under which if it was revocable for a period less than one year, the value could not be worked out and, thus, it had to be "nil". The Tribunal as well as the High Court were in error in rejecting the assessee's contention that in terms of rule 11(l), no gift-tax was payable. Admittedly, there is no other provision under which the capitalised value could be fixed. In the aforesaid premises, we allow the appeals and set aside the judgment and order of the High Court, in regard to the first question aforestated. Accordingly, we answer that question in the negative and in favour of the assessee.
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