Commissioner Of Income-Tax vs R. Ponnammal on 22 January, 1986
On the other hand, it was contended on behalf of the revenue relying on the decision in the case of CIT v. R. Ponnammal [1987] 164 ITR 706 (Mad.) that the essential ingredients of a family settlement would include a dispute and a settlement thereof among the family members whereas the present composition deed was not among the family members and did not reveal any settlement of even a possible dispute. It was submitted that it remained a conveyance of property without consideration to discharge the debt of the donees and, therefore, the gift-tax assessments should be upheld.