ROSHAN D NARIMAN Vs. ASSISTANT COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
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M.K. Chaturvedi, Judicial Member -
(1.) THIS appeal by the assessee is directed against the order of the C.I.T.(A)-XV, Bombay and pertains to the assessment year 1988-89.
(2.) The short question neatly identified by Shri. M. Subramanian, Id. counsel for the assessee, is whether the sum of Rs. 23,67,835, being the convertible value in rupees of the prize money of ï¿½ 1,00,000 on Premium Savings Bond, held in the name of the assessee, of the face value of ï¿½50, alleged to have been received as gift consequent upon the declaration of prize, is exigible to tax ?
Briefly the facts:-The assessee is a citizen of India and domiciled in India. For the relevant assessment year, she was a resident in India. She is following mercantile system of accounting. Her accounting period ended on 31-3-1988. In her return, she reflected share of profit received from M/s. Zorashtrian Dairy. Along with the return of income, the assessee filed in ward remittance certificate number 00450 dated 23-12-1987 from Bank of India, Bombay. As per the certificate a sum of ï¿½1,00,000 was credited by the said bank in the assessee's A/c No. 21909 in Central Bank of India on 21 -12-1987. The amount was remitted by the Department of National Savings, U.K. through Bank of India, London Branch.
This amount was stated to be beyond the ken of Income-tax Act. It was stated that the assessee received the Premium Savings Bond in London on 3-12-1987, as a gift from Shri Kersi R. Bhadha, her first cousin, a British citizen, who purchased it in January 1986 in assessee's name. It fetched the prize in the draw held in Septemper 1987. The general conspectus of the main plank of the assessee's argument was that the prize was borne by Shri Kersi R. Bhadha and not by the assessee and, therefore, the amount was not exigible to tax in India.
(3.) SHRI M. Subramanian, Id. counsel for the assessee, appeared before us. Relevant documents and papers were filed. It was contended that the donee's acceptance is, sine qua non, for the completion of the gift. The Premium Savings Bond was purchased in January 1986 without the knowledge of the donee. Our attention was invited on the declaration made by SHRI K.R. Bhadha dated 3-12-1987 before the Commissioner for Oaths, which reads as under :-
I, Kersi R. Bhadha, a British citizen, resident at
34 Summerhouse Avenue HESTON Middlesex TWS9DA
do hereby state, admit and solemnly declare as follows:
In the year 1986, I had purchased Premium Bonds of the face value of British Pounds Sterling ï¿½50.00 (fifty) in the name of Mrs. Roshan D. Nariman (my first cousin), as I considered her as my own sister, and as a lucky person.
I hereby make an unconditional gift here in London of the said Premium Bonds, together with the right to receive any prize thereon which has already been declared or which may be declared in future to the said Mrs. Roshan D. Nariman in consideration of my natural love and affection for her. I have now handed over the said Premium Bonds Certificate to Mrs. Roshan D. Nariman here in London.
Now onwards, I have no interest whatsoever in the said Premium Bonds or any prize in respect thereof and the said Mrs. Roshan D. Nariman has become the absolute owner thereof.
C.R.B. COOKE COMMISSIONER FOR OATHS OWEN WHITE 32 36 SATH ROAD HOU.S.. OW MIDDLESEX TW3 3LF;
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