M G DOSHIT Vs. GIFT TAX OFFICER
LAWS(IT)-1989-1-15
INCOME TAX APPELLATE TRIBUNAL
Decided on January 30,1989

Appellant
VERSUS
Respondents

JUDGEMENT

M.A.A. Khan, Judicial Member - (1.)THIS is an appeal by an assessee from the order of the Appellate Assistant Commissioner of Income-tax, A.R.II, Ahmedabad (A.A.C.) dated June 18, 1987 upholding the gift-tax assessment as made by the Gift-tax Officer (GTO), Professional Circle-I, Ahmedabad under Section 15(3) of the Gift-tax Act, 1958 (the Act).
(2.)Briefly stated the relevant facts are that the assessee is a Solicitor enrolled in the High Court of Bombay and presently practising at Ahmedabad in the name and style of M.G. Doshit & Co. From May 1952 till the end of December 1972 the assessee was a partner of M/s Bhaishanker Kanga & Girdharlal, a firm of Solicitors at Bombay. On the formation of the State of Gujarat and establishment of a High Court at Ahmedabad, the said firm of M/s Bhaishanker Kanga & Girdharlal opened an office in Ahmedabad and from mid 1960 to mid 1963, the assessee was posted at Ahmedabad. In 1963, the assessee went back to the Bombay office and in or about July 1968 he was again posted in Ahmedabad office of the said firm where he retired on and with effect from January 1, 1973.
Under the provisions of several deeds of partnership of M/s Bhaishanker Kanga and Girdharlal as executed by and between the partners thereof from time to time, a former partner was entitled to receive a share in the profits of the said firm in respect of the work done during the time he was a partner. After his retirement from the said firm, the assessee, by a deed of settlement dated December 27, 1976, settled on trust his right to receive, recover and realise from the said firm his share according to the several deeds of partnership from the recoveries for the relevant period made after December 31, 1975. In the said deed of settlement the assessee valued the trust property at Rs. 40,000.

(3.)ON June 29, 1977 the assessee filed a gift-tax return in respect of the property settled on trust by the abovementioned deed of settlement dated December 27, 1976. In the said return the assessee valued the property gifted at Rs. 40,000 and after deducting Rs. 5,000 exempt under Sub-section (2) of Section 5 of the Act valued the taxable gift at Rs. 35,000.


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