1982 (5) TMI 106 - AT - Income Tax

Issues Involved:
1. Interpretation of the term "instrument of gift" under Section 18A of the Gift-tax Act, 1958.
2. Eligibility for rebate of stamp duty paid on multiple gifts under Section 18A.
3. Application of Section 13(2) of the General Clauses Act to the term "instrument of gift."

Issue-wise Detailed Analysis:

1. Interpretation of the term "instrument of gift" under Section 18A of the Gift-tax Act, 1958:

The primary issue was the interpretation of the term "instrument of gift" in Section 18A of the Gift-tax Act, 1958. The appellant argued that the term should include the plural, meaning all instruments of gift made in a year should be aggregated. The Tribunal analyzed Section 18A, which states, "Where any stamp duty has been paid under any law relating to stamp duty in force in any State on an instrument of gift of property in respect of which the gift-tax payable exceeds one thousand rupees, the assessee shall be entitled to a deduction from the gift-tax payable by him of an amount equal to the stamp duty so paid or one-half of the sum by which the gift-tax payable, before making the deduction under this section, exceeds one thousand rupees, whichever is less." The Tribunal concluded that the term "instrument of gift" refers to each individual gift and not an aggregate of gifts made in a year. The Tribunal emphasized that the language of Section 18A is clear and unambiguous, and it specifically refers to the gift-tax payable in respect of each instrument of gift of property.

2. Eligibility for rebate of stamp duty paid on multiple gifts under Section 18A:

The appellant claimed a deduction for the stamp duty paid on four gifts made to his daughters, arguing that the total gift-tax payable should be aggregated to determine eligibility for rebate. The Tribunal, however, upheld the views of the GTO and the AAC, stating that for the rebate under Section 18A to apply, the gift-tax payable on each individual gift must exceed Rs. 1,000. The Tribunal reasoned that the basic qualification for rebate is that the gift-tax payable in respect of each instrument of gift must exceed Rs. 1,000. If the gift-tax payable on individual gifts does not meet this threshold, those gifts do not qualify for the rebate. The Tribunal found no absurdity or vagueness in the language of Section 18A that would necessitate a different interpretation.

3. Application of Section 13(2) of the General Clauses Act to the term "instrument of gift":

The appellant argued that Section 13(2) of the General Clauses Act, which states, "words in the singular shall include the plural, and vice versa," should apply to the term "instrument of gift" in Section 18A. The Tribunal rejected this argument, stating that Section 13 of the General Clauses Act applies only where the circumstances require such an interpretation. The Tribunal cited the Madras High Court's ruling in Sambata v. Narayana, which held that the singular cannot always include the plural unless the circumstances necessitate it. The Tribunal found no indication in Section 18A that the term "instrument of gift" should be interpreted to include multiple instruments of gift. The Tribunal concluded that the language of Section 18A clearly refers to each individual instrument of gift, and the circumstances did not require the application of Section 13(2) of the General Clauses Act.

Conclusion:

The Tribunal endorsed the view that Section 18A contemplates a rebate of tax only if the gift-tax payable in respect of each individual instrument of gift exceeds Rs. 1,000. The appeal was dismissed, affirming the decisions of the GTO and the AAC that the aggregate gift-tax payable in a year is not relevant for granting the rebate under Section 18A. The Tribunal emphasized that both Section 3 (the charging section) and Section 18A operate in different fields and do not conflict with each other.

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