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A family settlement does not result in a “transfer” and compensation received to equalize inequalities in family settlement is not taxable as “income
“Whether the amount of compensation paid to the
assessee to settle inequalities in partition, thus, a
provision of owelty, represents immovable property and
is not an income exigible to tax?”
..... So, the family arrangements are
governed by principles which are not applicable to dealings
between strangers and the family arrangement among them is for
the interest of the family, for the harmonious way of living. So,
such realignment of interest by way of effecting family arrangement
among the family members would not amount to transfer.”
......
<> This is a proposition , one thought, was settled decades ago.
(Was it a gift tax case of "Getti Chettiar" ?!
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