Indeed he can. Section 45(3) comes into play in that case which says the amount recorded in the books of the firm as the value of such property would be treated as consideration and the partner would accordingly be liable to capital gains tax. Impliedly what is meant, such transaction between a partner and the firm is brought within the tax net notwithstanding anything in the law on partnership.

I recently purchased a BDA site in auction along with my brother-in-law. We both shared the amount for the property. The site was purchased in my brother-in-law’s name and later the property was divided into two equal shares and a gift deed was done for half of the property in my name by my brother-in-law. The gift deed was registered and is in my name. My brother-in-law now claims he wants to keep the whole property and says the gift deed wouldn’t be valid. Is that true? Where do I stand legally with regard to this?

D. Reddy, email

You are on a secure wicket. There is no way your brother-in-law can renege from his commitment. I take it that the gift was irrevocable and unconditional. In that case the gift was complete as soon as you conveyed your acceptance. You can now certainly enforce it. I suggest you immediately swing into action to get the property registered in your joint names.

I took retirement from bank’s service in August 2005 under Exit Option Scheme2005 of State Bank of India for which I was paid 50 per cent of 36 months’ advance salary aggregating Rs 4,83,562 on which income-tax of Rs 1,44,748 was deducted at source by the bank as per terms of Exit Option Scheme (reading as “the amount of ex-gratia will be added to the income of the officer for the year and income-tax recovered at the applicable rate at source”).

Subsequently, through a circular, the bank advised that the Exit-Optee may submit his claim to the ITO for refund of the income-tax deducted at source on ex-gratia amount, by submitting details on set of forms Annexure VI (Form No.10E -Rule 21AA), Annexure VI (A) and Annexure VI(B). Accordingly, I submitted my claim for refund of the amount of income-tax on ex-gratia amount deducted at source by the bank as stated above, along with my annual income-tax return for 2005-06, but till date no refund or any advice otherwise in this regard has been received by me from ITO.

Prabhat Dev Mondal, Patna

The assessing officer has got time up to one year from the end of the financial year in which the return was submitted to issue the refund cheque. You may therefore have to bide your time.

S. MURLIDHARAN

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