1964 (1) TMI 43 - HC - Income Tax

Summary

Issues:
1. Competence of application for revision under section 24(1) of the Gift-tax Act.
2. Interpretation of the phrase "or has been the subject of an appeal to the Tribunal" in the context of the Gift-tax Act.
3. Jurisdiction of the Commissioner to entertain a revision petition after an appeal has been withdrawn from the Tribunal.

Analysis:
1. The judgment deals with a writ petition challenging the Commissioner of Income-tax and Gift-tax's order deeming an application for revision under section 24(1) of the Gift-tax Act as incompetent. The petitioner had made a gift to his minor nephew, which was later assessed under both the Gift-tax Act and the Wealth-tax Act. The petitioner appealed the assessment, but upon attaining majority, sought to withdraw the appeal and filed a revision petition before the Commissioner.

2. The primary issue was the interpretation of the phrase "or has been the subject of an appeal to the Tribunal" in the context of the Gift-tax Act. The Court considered a similar provision under the Wealth-tax Act and held that an appeal must be effective, with a decision on the merits by the Tribunal, to be considered as forming the subject of an appeal. The Court emphasized that an appeal withdrawn without a decision on merits does not meet this criterion.

3. The Court rejected the argument that the simultaneous filing of a revision petition and an application for withdrawal before the Tribunal made a technical difference. It held that the petitioner had the right to choose whether to have the grievance determined by the Tribunal or the Commissioner. As the Tribunal had permitted the withdrawal of the appeal, the Commissioner's jurisdiction to entertain the revision was not barred. The Court concluded that until a decision on the merits by the Tribunal, the case cannot be considered as forming the subject of an appeal.

4. Consequently, the Court granted a writ quashing the Commissioner's order, directing him to entertain the revision petition and dispose of it in accordance with the law. The writ petition was allowed with costs in favor of the petitioner.

This judgment clarifies the interpretation of the phrase "or has been the subject of an appeal to the Tribunal" in the context of the Gift-tax Act and underscores the right of the assessee to choose between the Tribunal and the Commissioner for redressal of grievances.