1978 (10) TMI 30 - HC - Income Tax

Summary

Issues involved: Application for reference of a question of law under s. 26(3)(a) of the Gift-tax Act, 1958.

Summary:
The case involved an application under s. 26(3)(a) of the Gift-tax Act, 1958, requesting the Tribunal to refer a question of law to the High Court. The assessee had made a gift to his son for providing education, claiming exemption under s. 5(1)(xii) of the Act. The Gift Tax Officer (GTO) assessed the gift to gift-tax, but the Appellate Assistant Commissioner (AAC) granted exemption. However, the Tribunal set aside the AAC's order, stating that the assessment by the GTO was an agreed assessment not open to appeal. The Tribunal refused to refer any question, deeming the nature of the assessment as a question of fact. Upon review, it was found that there was no explicit withdrawal of the exemption claim by the assessee in the assessment order or in correspondence with the GTO. Hence, the High Court directed the Tribunal to refer the question of whether the assessee had given up his claim for exemption under s. 5(1)(xii) before the GTO for the court's opinion, citing lack of explicit statements supporting such a conclusion.