Rajesh Bindal, J. - (1.) THIS order will dispose of eight GT appeals bearing Nos. 2, 3, 4, 5, 6, 7, 8 and 9 of 2004, as common questions of law and fact are involved. Even before the Income Tax Appellate Tribunal, Chandigarh Bench 'A' (for short, the Tribunal') also the same were heard and decided by a common order.
(2.) THE facts have been noticed from GT Appeal No. 3 of 2004. The appellant (hereinafter referred to as 'the assessee') is in appeal before this Court against order dt. 7th Aug., 2003 passed by the Tribunal in GTA No. 8/Chd/1997 for the asst. yr. 1993 -94 raising the following substantial questions of law: (i) Whether in the facts and circumstances of the present case, the assessing authority is justified in levying the gift -tax at Rs. 6,68,531? (ii) Whether in the facts and circumstances of the present case, the GTO as well as Tribunal have committed a gross error by ignoring the fact that the new partners had contributed huge capital and labour which amounts to adequate consideration and thus it cannot be held as a gift within the meaning of Section 4 of the GT Act, 1958 and furthermore the decision given by the lower authority is against the decision rendered by the Madras High Court in the case reported in volume, 264 ITR 2003 (iii) Whether in the facts and circumstances of the present case, the assessing authority has committed an error in taking both goodwill and market value of assets into consideration while calculating the value of taxable gifts? (iv) Whether in the facts and circumstances of the present case, the assessing authority has wrongly held that the reduction of the assessee's share of profit constitutes a gift under the GT Act, 1958? (v) Whether in the facts and circumstances of the present case, Annexs. P. 1, P.2 and P.3 are legally unsustainable?
(3.) BRIEFLY , the facts as noticed in the orders passed against the assessee are that for the year in question, the assessee had filed his GT return on 29th June, 1993 declaring the value of taxable gifts at 'nil'. Dissatisfied with the return filed by the assessee in terms of the information furnished therein, a notice under Section 17(2) of the GT Act, 1958 (for short, 'the Act'), was issued to the assessee. It was noticed that the assessee was a partner in M/s Munjal Gases to the extent of 20 per cent and in M/s Munjal Steels to the extent of 20 per cent. However, in the assessment year in question, the same was reduced from 20 per cent to 10 per cent in both the firms and shares of other partners were also altered.;