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TMI Blog1970 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... , on the facts and in the circumstances of the case, was justified in holding that the gifts were void at law ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee-firm was not entitled to the deduction of the interest of Rs. 9,000, paid to each of these two ladies, Smt. Prakash Wati and Smt. Snehlata ? " Lala Jugal Kishore together with his sons, Jai Prakash and Baij Nath, and their respective families constituted a Hindu undivided family. Upon partition of the larger family in 1947, Jai Prakash and Baij Nath became the kartas of their respective Hindu undivided families. The father and sons entered into a partnership under the name " Jugal Kishore Jai Prakash ", which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to be reasonable and were detrimental to the interests of the minors. It pointed out that the gifts militated against the provisions of the Hindu Minority and Guardian ship Act, under which the interest of the Hindu minor had been considered as of paramount importance. Accordingly, the gifts were held to be void. Now, there can be no dispute that a father has the power of making a gift of ancestral movable property without the consent of his sons for the purpose of performing " indispensable acts of duty, and for purposes prescribed by texts of law, as gifts through affection, support of the family, relief from distress and so forth ", but such gifts must be within reasonable limits. The Supreme Court in Ammathayee (alias) Perumalakk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hargava, where, after discussing the case law on the subject, the learned judges observed : " This review of the legal position, in our opinion, is sufficient to establish two broad propositions. The first is that a gift by the manager of a joint Hindu family of the family property at any rate to a member or members thereof is voidable and not void ab initio. The second is that such a gift can be attacked only by the members of the family whose interests are affected thereby and not by strangers. " From the foregoing, the following principles are deducible : 1. The karta of a Hindu undivided family may gift a portion of the ancestral movable property to a member of the family ; 2. The gift must be within reasonable limits ; 3. If the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t made by a Hindu father is within reasonable limits must be answered with reference to the facts and circumstances of the particular case, the word 'reasonable' meaning what is just, fair and equitable in view of the value, income and financial position of the estate, the number of persons who constitute the joint Hindu family, the relationship which the donor bears to the donee and any other circumstances which may appear in the case and are relevant and material to its determination. " What is the material before us on the basis of which the revenue seeks a finding that the gifts made by Jai Prakash and Baij Nath were in excess of reasonable limits ? It is pointed out that the capital account of Jai Prakash showed a total of Rs. 2,41,27 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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