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TMI Blog2003 (4) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... 61, and, therefore, the rental income of the three minors from the properties gifted to them by the assessee was includible in the total income of the assessee for the three years under consideration?" The assessment years, in all, are 1983-84 to 1985-86, that the assessee-respondent has made oral declarations on January 1, 1982, in favour of his minor sons Zahiruddin and Mohd. Zafar and similar declarations have been made on December 1, 1982, in favour of his minor son Moinuddin. The assessee, by these oral declarations, claimed that he has gifted the properties to his minor sons. Such gifted properties were accepted and those properties are fetching rental income Rs. 11,400 in the assessment year 1983-84 and Rs. 13,500 in each of the two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the hands of the assessee transferor. The Tribunal has considered this aspect in detail in its order. The relevant paras. 9 to 13 of the order of the Tribunal read as under: "9. A 'Hiba' or gift under the Mohammedan law is a 'transfer of property, made immediately, and without any exchange' by one person to another and accepted by or on behalf of the latter. For the purpose of taxability of the income from the gifted property the meaning of the term 'transfer' shall have to be known from the definition of the term as given in section 2(47) of the Act. Once a transaction amounting to gift under the Mohammedan law falls within the definition of the term 'transfer', as given in section 2(47) of the Act, the charging section under the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee as these were not found by the Tribunal as chargeable to gift-tax on the ground of the purpose of the gift being ensuring education to the minors and as such not includible in the computation of the net wealth of the assessee, is not convincing. 12. It is not in dispute that the Tribunal in its order dated May 30, 1989, passed in the gift-tax case of the assessee for the assessment year 1983-84 (GTA No. 4/JP/88) had declared the gifts in question as exempt under section 5(1)(xii) of the Gift-tax Act, 1958. The benefit of such exemption mayor may not be available to the assessee in his wealth-tax case, if any, but certainly not in the instant case for the obvious reason that in the Act there is no proviso below section 64(1)(v) like ..... X X X X Extracts X X X X X X X X Extracts X X X X
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