COMMISSIONER OFINCOME TAX, KANPUR vs DR. R.S. GUPTA

The Supreme Court held that for a gift to be valid under the Wealth Tax Act, there must be existing property available at the time of the gift. Specifically, in cases involving non-banking firms without overdraft facilities, valid gifts cannot be made if the funds are not available in the donor's account. The Court found that the entries made in the company's books did not constitute valid gifts as the requisite funds were not present, thus upholding the inclusion of the amounts in the net wealth of the assessee under Sections 4, 27(1), and 29 of the Wealth Tax Act.