GOVINDRAM T JARANI Vs. STATE

JUDGEMENT

(1.) 1. Shri G.T. Jarani, the applicant, is a non-resident. He gifted 68 scrips of shares of Indian companies to his wife Smt. Kamla G. Jarani out of natural love and affection in December, 2002. Out of these shares, some were sold in the 3rd quarter of 2003 by Mrs. Kamla G. Jarani. This resulted in earning income in the form of capital gains on the investment originally made by the applicant. On these facts, the applicant has sought rulings on the following questions :

(2.) If such income is to be included in the income of donor (applicant) then shall such income of capital gain be excluded from the total income of the donee?

(3.) THE applicant was given an opportunity of personal hearing and the case was fixed on 5th May, 2004. THE applicant, however, vide his letter dt. 2nd April, 2004 has requested that the said application be proceeded with after taking into consideration the views expressed in the rejoinder. In the rejoinder, the applicant has explained the facts regarding making of gift and has relied on the statement made with the application.