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Departmental appeal under the GT Act challenging the deletion of Rs. 26,000 from taxable gift in the case of the assessee-donor. Analysis: The appellant contested the deletion of Rs. 26,000 from taxable gift in the case of the assessee-donor. The assessee had gifted Rs. 5,000 to his son and filed a return under the GT Act as HUF. Following a partition through a Civil Court decree, the son received a 'nohra' valued at Rs. 8,000, and the wife received half share in a shop valued at Rs. 18,000. The GTO included the total amount of Rs. 26,000 in the taxable gift and changed the status of the assessee from HUF to individual. Before the AAC, it was argued that the donor-assessee had already been subjected to wealth tax for the Rs. 26,000, which was the value of the property given to the son and daughter-in-law. The AAC, in para 5 of the order, deleted the addition based on this ground. The Revenue disputed this action, arguing that wealth tax imposition should not affect gift tax assessment. However, the status in which the gift tax return was filed was HUF, and the change in status was due to the court decree resulting in the partition. The counsel for the assessee contended that since the son and daughter-in-law received the property through a court-ordered partition, the question of gift should not arise, and the assessment framed in a different status was legally flawed. The Deptl. Rep. argued that these contentions were beyond the scope of appeal, relying on case law. After considering the submissions, the Tribunal confirmed the AAC's decision to delete the Rs. 26,000 from the taxable gift. The Tribunal found that the amount should not have been subjected to gift tax as it was part of a family partition, not a gift. The Tribunal rejected the Revenue's arguments and upheld the AAC's decision, emphasizing that the change in status and wealth tax imposition did not invalidate the assessee's claim. The appeal was dismissed, affirming the AAC's order.
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