TMI Blog1994 (7) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... t family are not void but only voidable and that any income from the gifted property cannot be included in the hands of the owner--the Hindu undivided family--notwithstanding the fact that the gift was invalid under Hindu law and the gifted property was inseparable from the property owned and possessed by the donor?" The brief facts of the case are that Shri Dwarka Das, karta of a Hindu undivided family, gifted one-third share of Shop No. 110, Dhan Mandi, Sriganganagar, to Sarva Shri Vinod Kumar, son of Shri Ram Kishan and Suresh Kumar, son of Shri Sangarmal. Besides this, the karta has also made a gift of Rs. 5,000 to Master Arvind Kumar, son of Hukam Chand Lila. Both the gifted properties formed part of the joint family property of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 244, it has been held by the Allahabad High Court that any order passed under the Gift-tax Act in the case of one assessee will not be binding on the Income-tax Officer while taking assessment proceedings against another assessee, even though the transaction giving rise to proceedings under the Gift-tax Act and the Income-tax Act, respectively, against the two assessees may be the same. Mulla in Hindu Law, 16th edition, at paragraph 357, observed, that a Hindu, whether governed by the Mitakshara or the Dayabhaga school, may dispose of by gift his separate or self-acquired property, subject in certain cases to the claims for maintenance of those whom he is legally bound to maintain. In paragraph 258, it has been said that according to the Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hindu undivided family. The Income-tax Appellate Tribunal was not justified in holding that the amount of gifts of joint family property made by the karta of the joint family are not void, but only voidable and that any income from the gifted property cannot be included in the hands of the owner of the Hindu undivided family notwithstanding the fact that the gift was invalid under Hindu law and the gifted property was inseparable from the property owned and possessed by the donor. So far as the question of gift of Rs. 5,000 is concerned, the position stands on a different footing as it was a cash gift which may arise because of the necessity of social obligation or like circumstances, when the karta can make gift of reasonable amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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