AIR 1991 SUPREME COURT 1847 ::1991 AIR SCW 2030 ::1991 TAX. L. R. 682 ::(1991) 2 RRR 511 ::1992 ChandLR(Civ&Cri) 301 ::(1991) 96 CurTaxRep 174 ::1991 (3) SCC 520 ::1991 All CJ 2 1003 ::(1991) 191 ITR 317 ::(1991) 2 Ker LT 244 ::(1991) 2 SCR 846 (SC) ::1991 UPTC 2 1132 ::(1991) 3 JT 67 (SC)

Supreme Court Of India

(From : Kerala)

Hon'ble Judge(s): K. Jagannatha Shetty, Yogeshwar Dayal , JJ

Gift - Made in contemplation of death - Marz-ul-maut gift is such gift - Cannot be denied exemption under S.5(1)(xi) - Disposition is, however, restricted to a third of estate of donor. Gift Tax Act (18 of 1958) , S.5(1)(xi)— Marz-ul-maut gift concerned is entitled to exemption from gift tax under S.5(1)(xi). In this connection, it cannot be said that the exemption provided under S.5(1)(xi) is not available to the assessee since S.191 of the Succession Act definition in which of gift in contemplation of death is adopted for purpose of S.5(1)(xi) of the Gift Tax Act is not applicable to marz-ul-maut gift. The exemption @page-SC1848 to gift in contemplation of death is provided under S.5(1)(xi) of the Gift Tax Act and not under S. 191 of the Succession Act. Section 191 furnishes only the meaning or requirements of gift in contemplation of death. If a gift in contemplation of death is recognised by the personal law of parties satisfying the conditions contemplated under S. 191 of the Succession Act, it cannot be denied exemption under S.5(1)(xi) of the Gift Tax Act even assuming that S. 191 as such will not be applicable to the parties. Under Mohammedan Law gift made during marz-ul-maut (death-bed illness) is subject to very strict scrutiny for its validity. Marz-ul-maut is a malady which induces an apprehension of death in the per....