TMI Blog1979 (1) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... yamma, was a partner in the firm, M/s. Lakshminarayana Rice Mills, along with her husband, Jyothinagaram Chikkavenkata Swamaiah, representing the joint Hindu family of which he was the Karta. The assessee was a partner in her individual capacity. On January 22, 1967, the said firm was dissolved and on taking accounts, it was found that she was entitled to Rs. 80,114.99. In the books of the firm, the amount standing to her credit was transferred to the account of her husband. On the next day, i.e., on January 23, 1967, the entire amount which was standing to the credit of her husband which included the amount transferred from the account of the assessee to his account, was partitioned amongst himself and his sons by way of partial partition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of the partnership firm would not constitute transfer of the amount from one person to another by way of gift. It has to be observed that, having regard to the peculiar facts involved in that case, it was not necessary for the High Court to decide the question whether mere making of an entry would amount to a transfer or a gift. It is seen at page 300 of that decision that the High Court found that the primary facts such as acceptance of gift on behalf of a minor son who was alleged to be the donee and corresponding entries reflecting such an acceptance by the trustee were absent and, therefore, they could not hold that there was a gift by the father who was an assessee in that case in favour of the minor son. This becomes clear from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us in Bhau Ram Jawaharmal v. CIT [1971] 82 ITR 772, the Allahabad High Court has observed that it was not necessary in every case for the validity of a gift that there should be physical delivery by the donor to the donee and that a transfer could be effected by making debit entries in the account of the donor and by making corresponding credit entries in the account of the donees. So long as the entries made in the respective accounts put the gifted amount beyond the control of the donor and resulted in his ownership in it being replaced by the ownership of the donee, there was no reason why a valid gift cannot be effected through such book entries. In the instant case, it is not the case of the assessee that she had not transferred the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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