GIFT TAX OFFICER Vs. MRS CHAMPA RANI AGGARWAL
INCOME TAX APPELLATE TRIBUNAL
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R.K. Bali, Accountant Member -
(1.) THESE two appeals by the Revenue involve similar issue and are, therefore, disposed of by a common order for the sake of convenience.
(2.) Briefly the facts in G.T.A. No. 3/Asr./1992 are as under.
The assessee, Mrs. Champa Rani Aggarwal is stated to have made gifts of Rs. 1.20 lacs during assessment year 1990-91 to six donees as under:-
The assessee's husband, who was operating the bank accounts of the intended donees, deposited these amounts in their Saving Bank Accounts. The funds, however, continued to remain with the firms where they were deposited prior to the intended gifts. Subsequently due to family circumstances, the intended donees refused to accept these gifts and returned the amounts by cheques to the donor - Mrs. Champa Rani Aggarwal, the assessee in the present appeal. It was under these circumstances that the original return filed by the assessee declaring taxable gift at Rs. 1 lac on 11 -6-1991 was revised by the assessee on 8-10-1991 declaring taxable gift at Rs. Nil. The GTO, however, held that the original return, filed on 11 -6-1991, reflected the correct state of affairs and the subsequent return filed on 8-10-1991, consequent to the return of the gifts by the donees on 28-9-1991, was only an afterthought to avoid payment of gift-tax. He accordingly framed the assessment in the case of the assessee and determined the taxable gift at Rs. 1 lac.
In G.T.A. No. 4/Asr./1992, the assessee-Sh. Mitter Pal Aggarwal, initially filed return declaring taxable gift of Rs. 1.20 lacs on 11-6-1991, which was subsequently revised on 8-10-1991 declaring taxable gift at Rs. Nil. Here also, initially the assessee is claimed to have declared gifts aggregating Rs. 1.40 lacs to seven different persons namely:-
Here also, on account of family circumstances - which were explained by the assessee before the G.T.O., the donees informed the assessee that they have never accepted the gifts made to them and because of making of these gifts the assessee's (donor's) sons have been accusing the donees of using undue influence and passing uncalled for remarks, which resulted in strained relations between the donees and the sons of the donor, the donees have returned the gifted amount by way of cheques dated 28-9-1991 and consequently, here also, the assessee has filed revised return of gift declaring value of taxable gift at Rs. Nil. Here also the GTO held that the original return was the correct return and the subsequent return declaring Nil taxable gift was with a view to avoid payment of gift-tax. He accordingly taxed the assessee at a figure of taxable gift of Rs. 1.20 lacs.
(3.) BOTH the assessees filed appeals and the Ld. Dy. CGT (Appeals), vide his order dated 12-3-1992, directed the GTO to accept the revised returns declaring taxable gift at Rs. Nil in the case of both the assessees holding that the donees, in both the cases, have not accepted the amount gifted to them. The Ld. Dy. CGT(A) was of the opinion that the intended gift, of movable property, is not complete unless it is accepted by the donee and since in the present cases the donees never accepted these gifts, the intended gifts never took place.;
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