SALAM ABOOD Vs. GIFT TAX OFFICER INCOME TAX CUM WEALTH TAX HYDERABAD
LAWS(APH)-1969-12-24
HIGH COURT OF ANDHRA PRADESH
Decided on December 05,1969

SALAM, ABOOD Appellant
VERSUS
GIFT-TAX OFFICER, INCOME-TAX CUM WEALTH TAX, HYDERABAD Respondents





Cited Judgements :-

POLAKI BUCHI BABU VS. COMMISSIONER OF GIFT TAX [LAWS(ORI)-1987-1-16] [REFERRED TO (AP) : TC35R.738]


JUDGEMENT

Sriramulu, J. - (1.)This petition has been filed by the assess under Art. 226 of the Constitution of India, against the Gift Tax Officer, with a prayer to issue a writ of certiorari or any other appropriate write or direction to call for records and to quash the Gift Tax Assessment dated 31-12-1964.
(2.)The facts leading to the filing of this Writ Petition are staged below: The petitioner gifted Rs. 1,15,000.00 to his four sons on 4-1-1963. Under Section 3(1) of the Income-tax Act, the previous year in the case of the petitioner was determined as 1-10-1962 to 30-9-1963. According to the rates specified in the schedule of the Gift Tax Act, which was in force on 4-1-1963, the Gift Tax that was payable in respect of the above gift worked out to Rs. 5,400.00. the Finance Act of 1964 which came into force with effect from 1-4-1964, varied the rates of gift tax by amending the schedule. In accordance with the rates specified in the schedule and which came into force with effect from 1-4-1964, the Gift-Tax that was payable in respect of the above gift worked out to Rs. 21,400.00. The Gift-Tax Officer accordingly completed the Gift-Tax Assessment by computing the Gift-Tax at Rs. 21,400.00.
(3.)Aggrieved by the above assessment, the Petitoner submitted before us, this writ petitions under Art, 226 of the Constitution of India, for issuing appropriate directions etc. The petitioners counsel submitted before us that the liability to pay Gift Tax in respect of the gifts, crystallised on 4-1-1963, on which date the gift was made and it was at the rtes specified in the schedule in force on that date, the Gift-Tax that was payable on the gift, should have been calculated. Inviting our attention to Section 29 of the Gift-Tax Act, the learned Counsel for the Petitoner submitted that the Act makes a donor liable for the payment of Gift-Tax in respect of the gifts made by him and under Section 18 of the said Act, Gift-Tax calculated at the rates specified in the Schedule, if deposited in the treasury within 15 days, from the date of the gift, he would be given credit to the amount so paid plus 10% of the amount so paid. On the date of gift and also on the last day of the fortnight, within which he could have deposited, the gift-tax in the treasury, the gift-tax at rates specified in the schedule worked out to Rs. 5,400.00 only. the petitioner should know as to what amount of gift-tax he has to pay in respect of the gifts he has made, so that he could adjust his financial maters accordingly. The learned counsel further invited our attention to the similar wording of the charging section of the Wealth Tax Act and submitted that under the Wealth Tax Act, the courts have held that the liability to pay wealth tax crystallised on the valuation date and not on the first date of the assessment year. On that analogy, in the gift tax matters, it was submitted that the gift-tax liability crystallised on the date of gift and not on the commencing date of the assessment year following the previous year.
;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.