GOLI ESWARIAH vs COMMISSIONER OF GlFT TAX, ANDHRA PRADESH

The Supreme Court held that the act of a Hindu coparcener throwing his self-acquired property into the common stock of a Hindu Joint Family does not constitute a 'transfer' under Section 2(xxiv)(d) of the Gift Tax Act, 1958, and therefore is not taxable as a gift under Sections 2(xii) and 4(a) of the Act. The Court clarified that such an act is a unilateral declaration of intent to treat the property as joint family property, which does not involve a transaction between parties. Consequently, the appeal was allowed, overturning the High Court's decision that had classified the act as a taxable gift.