TMI Blog2001 (8) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration Act and, theref6re, fell in error in coming to the conclusion that the case fell within the provisions of section 4 of the Gift-tax Act and, therefore, as it was a deemed gift it was not necessary that the document had to be registered. In our view, the general law did not stand abrogated and the requirement of complying with the provisions of the Transfer of Property Act and the Registration Act had to be fulfilled. The High Court, therefore, erred in answering the question of law in the negative and against the Revenue. - - - - - Dated:- 16-8-2001 - Judge(s) : B. N. KIRPAL., SHIVARAJ V. PATIL JUDGMENT The judgment of the court was delivered by B. N. KRIPAL J.-The respondent was the owner of immovable property and by de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ift", inter alia, as meaning the transfer of immovable property made voluntarily and without consideration from one person to another. Section 123 provides that for the purposes of making a gift of immovable property the transfer must be effected by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses. There can be little doubt that in order that there should be a transfer of property by way of gift as contemplated by the Transfer of Property Act, there has to be a registered document if the property sought to be transferred is immovable. Section 2(xii) of the Gift-tax Act defines "gift" as meaning a transfer by one person to another of any existing movable or immovable property made volun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n found to the satisfaction of the Assessing Officer to have been bona fide, shall be deemed to be a gift made by the person responsible for the release, discharge, surrender, forfeiture or abandonment ; (d) where a person absolutely entitled to property causes or has caused the same to be vested in whatever manner in himself and any other person jointly without adequate consideration and such other person makes an appropriation from or out of the said property, the amount of the appropriation used for the benefit of the person making the appropriation or for the benefit of any other person shall be deemed to be a gift made in his favour by the person who causes or has caused the property to be so vested :" There can be no doubt that ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain transactions of transfer which may not amount to a gift within the meaning of section 122 of the Transfer of Property Act but would be regarded as gifts for the purpose of subjecting such transfers to the levy of gift-tax. In this behalf, reference may usefully be made to CGT v. R. Valsala Amma [1971] 82 ITR 828 (SC) wherein this court at page 830 observed that : "The Gift-tax Act did not change the general law relating to the rights of property". The general law would take into its ambit not only the provisions of the Transfer of Property Act but would also require application of the provisions of the Registration Act. It is not necessary for us to refer to the decisions of the High Courts in this behalf except to note that the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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