SATYA NAND MUNJAL vs COMMR OF GIFT TAX

The Supreme Court addressed the validity of a revocable gift under the Gift Tax Act, specifically analyzing the implications of Section 2(xii) and Section 4 of the Gift Tax Act, 1958. The Court held that a revocable gift does not constitute a completed gift for tax purposes, thereby affirming the ITAT's decision to quash the gift tax assessment. The ruling clarified that the intention to revoke the gift within the stipulated period negates the gift's validity, leading to the conclusion that the assessment made by the Gift Tax Officer was erroneous.