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TMI Blog2004 (4) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... n for the assessment year 1988-89, admitting a taxable gift of Rs. 2,70,000. The Assessing Officer referred the question of valuation of this gifted property to the Departmental Valuation Officer and on the basis of the report, he adopted the value of the gifted property at Rs.10,77,240. Aggrieved by this, the assessee preferred an appeal to the Commissioner (Appeals), contending that the gift was effected by a deed dated February 7, 1985 and that the donee was put in possession of the property on the very same day and as such, the value of the gifted property should be brought to tax in the assessment year 1985-86. This plea of the assessee was accepted by the Commissioner (Appeals) who directed the Assessing Officer to assess the value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transfer or conversion of any property referred to in section 4, deemed to be a gift under that section. Explanation. - A transfer of any building or part thereof referred to in clause (iii), clause (iiia) or clause (iiib) of section 27 of the Income-tax Act by the person who is deemed under the said clause to be the owner thereof made voluntarily and without consideration in money or money's worth, shall be deemed to be a gift made by such person;" The terms "transfer of property" is also defined in section 2(xxiv) of the Gift-tax Act as any disposition, conveyance, assignment, settlement, delivery, etc. Section 61 of the Registration Act specifies as to when registration of a document be deemed complete. The Supreme Court, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al is right in holding that the gift made by the assessee should be considered in the assessment year 1985-86. In Thulasimani Ammal v. CIT [2000] 108 Taxman 426 (Mad), this court considered the various rulings and held as under: - "Under section 2(xii), for a valid gift to be made there must be a transfer by one person to another of any existing movable or immovable property and, therefore, unless there is a valid transfer of the property in the eye of law, there is no gift for levy of gift-tax under the Act. The definition of the expression 'transfer of property' enlarging the meaning of transfer for the purpose of the Act, also does not in any way dispense with the requirement of registration of the deed of settlement, settling an immov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the requirements of section 123 of the Transfer of Property Act for a valid gift to be made by those persons mentioned in section 27(iiia) or 27(iiib) of the Income-tax Act. We put a pointed question to learned counsel as to under which of the three categories in the Explanation clause that the assessee comes. The learned counsel stated, the assessee would come under section 27(iiia) of the Income-tax Act. Section 27(iiia) refers to a person, who is allowed to take or retain possession of any building or part thereof in part performance of a contract. In the Income-tax Act, such a person will be considered as "owner of house property" for the purposes of sections 22 to 26 of the Act, that is, to find out the income from the house propert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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