23 November 2009
NO HUF cannot gift property to its member as partial partition of HUF is not allowed. Only if complete partition of HUF is made then only the assets of the HUF can be gifted to the members.
It would be exempt u/s 56(2)(vi) subject to above and also clubbing provisions need to be checked.
23 November 2009
Partial Partion is not allowed. Distribution of assets should be part of full partition of HUF. Please check the provisions relevant to it.
CAclubindia
