Supreme Court: Declaring Self-Acquired Property as Joint Hindu Family Property Not a Transfer Under Gift Tax Act 1958.

The Supreme Court ruled that when an individual declares their self-acquired property as joint Hindu family property, it does not constitute a transfer under the Gift Tax Act, 1958. This decision, made in the case involving an individual and the Commissioner of Gift Tax, Andhra Pradesh, is reported in 76 ITR at page 675. Consequently, the Central Board of Direct Taxes (CBDT) instructs that all departmental appeals on this matter before the Income Tax Appellate Tribunals and High Courts should be withdrawn. Appeals filed by taxpayers should be conceded, and relevant instructions should be issued to Gift Tax Commissioners and officers.

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