Manchanda, J. - (1.) THIS is a writ petition under Article 220 of the Constitution directed against the order, dated the 12th Sept. 1960 of the Commissioner of Income Tax and Gift Tax, U. P., whereby it was held that the application for revision under Section 24(1) of the Gift Tax Act was incompetent and could not be entertained.
(2.) THE undisputed facts of the case are that on the 18th of July 1957, a son was born to Mr. Vijayapat Singhania the brother of petitioner Ajaypat Singhania, a minor. On the 28th August, 1957, the petitioner's natural guardian Mr. Kailashpat Singhania, withdrew from Ajayapat's (Petitioner's) deposit account with Messrs. Juggilal Kamlapat, a sum of Rs. 10,000/- and Rs. 2,00,000/-aggregating to Rs. 2,10,000/- and placed the same to the credit of Mr. Vijaypat Singhania's newly born son's (Choota Gigga) account intending it to be a gift to him by the petitioner. On the 20th October, 1958, the return forms required were sent by the Gift Tax Officer along with the notice under Section 13(2) of the Gift Tax Act. On 8th November, 1958, the Gift Tax return was filed by the said guardian showing a gift of Rs. 2,10,000/-. On the 27th December, 1958, the gift was accepted by the guardian, Vijayatpat Singhania on behalf of the donee. On the 29th of January, 1959, Mr. Kailashpat Singhania applied for the cancellation of the gift tax return on the ground that the gift was void as it was made by a minor. This contention however was not accepted and on the 26th of March, 1959, the Gift Tax Officer completed the assessment. The same officer was also the Wealth Tax Officer and he assessed the sum of Rs. 2,10,000/- in the hands of the petitioner, Ajaypat Singhania. Therefore for the assessment year 1958-59 the said amount was assessed both under the Gift Tax Act as well as the Wealth Tax Act He further included interest on the said sum of Rs. 2,10,000/- which had been treated by him as gifted to the minor son of Ajayapat Singhania, as interest in the hands of the petitioner.
(3.) THE petitioner appealed to the appellate Assistant Commissioner. While the appeal was pending, the petitioner attained majority on 19-7-1959. On 11-8-1959 the Appellate Assistant Commissioner dismissed the appeal. On the 28th of November, 1958, the petitioner filed an appeal to the appellate Tribunal. It appears that during the pendency of this appeal Mr. Padampat Singhania the uncle of the petitioner met the Commissioner of Income Tax on the 12th of March, 1960. He thereafter wrote a letter (annexure 'G' to the petition) to the Commissioner, on the 17th of March, 1960 apropos his interview and referred to the present case in these words: "It was the Income Tax Officer who pointed out to us that the Gift was void in law. It was on his advice that we cancelled the gift, and it was also on his advice that we included the amount of gift in the Wealth Tax Return of Ajaypat Singhania and also offered interest on the amount of his assessment for Income Tax. Ajaypat has been subject to Gift Tax and Wealth Tax in respect of the amount of gift and Income Tax in respect of the interest on the amount gifted.... THEre was absolutely no motive to avoid any tax. This matter has been taken up in appeal to the Income Tax Appellate Tribunal. If, however, you are favourably inclined to exempt Ajaypat from double taxation, I am prepared to withdraw my appeal from the Income Tax Appellate Tribunal and to leave the whole to your judgment. If necessary, I am prepared to file with you a regular application under Section 334." This letter was replied to by the Commissioner vide Annexure 'H' dated 2-4-1960. THE ultimate paragraph thereof relates to the present case and reads: "In respect of the Gift Tax matter dealt with in paras 5, 6 & 7 I have also to state that as the matter is sub judice, it is not fair for me to give opinion on the merits of the case However, I had given my viewpoint to your representatives who had attended before me in respect to the request for keeping the tax to abeyance till the appeal decision. It a revision petition is filed under Section 33A(2) of the Act, I shall certainty decide the same on merit as I deem justified." THE reference to Section 33-A(2) of the Act in the letter obviously is to the Income Tax Act of 1922 THE corresponding provision under the Gift Tax Act is Section 24(1). On the 3rd May, 1960 the petitioner made an application to the Tribunal for withdrawing the appeal This application was in these words: 'The applicant has filed with the Commissioner of Gift Tax, U. P. Lucknow a revision application under Section 21 of the Gift Tax Act, 1958. The applicant, therefore, prays that the appeal quoted above be treated as withdrawn ' ;