Gift to adopted daughter

Dear Sai Mohan,

Sec. 2(15B) of Income Tax Act,1961 defines child includes a step-child & adopted child of individual.

The same was held in the case of  GTO v. A.K.C. Natarajan (1986) 16 ITD 359 (Mad).

Dear Saleem,

My doubt is regarding the Gift by Natural Father to a Adopted Daughter(given to another)

Dear Sai Sudha,

1 - If you have adopted Daughter, then it is exempt.

2 - If Adopted daughter ( given to another / adoption should be made by person other than person gifting the same) then it is taxable.

Guys, I don't think just on account of child being given away for adoption cuts away the lineal relationship as covered in section 56.

Dear Mr Nikhil, I agree with your point, whether your query resolved or there is any case law