9911796707
TMI Blog1984 (3) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... ears that the gift-tax was levied on the donor and such tax had not been paid by him. A letter is stated to have been written by the executor of the estate of the deceased-donor that he was unable to pay the gift-tax. Invoking section 29 of the Gift-tax Act, 1958 (' the Act ') the GTO allocated the tax payable by the donee at Rs. 65,070 in a letter issued on 3-11-1979. He further modified the demand by another letter dated 26-4-1982 wherein, apparently, on the basis of joint and several liability, he sought to claim the gift-tax arrears to the extent of the assets got by the assessee, that is, on Rs. 2,67,030. Along with the letter, he enclosed the revised demand notice and challan. The assessee treated this as an order without proper oppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... primarily liable for payment of the gift-tax. It is only when the Gift-tax Officer is of the opinion that the gift-tax cannot be recovered from the donor, it can be recovered from the donee. The proviso to section 29 of the Act, in my view, also places a restriction regarding the extent to which a donee is liable for payment of gift-tax. But the point is section 29 of the Act refers only to gift-tax and to no other sums due from the donor. Again, section 30 of the Act provides that the gift-tax payable in respect of any gift comprising immovable property shall be a first charge on that property. Here again, it is to be noted that a first charge on the property in the hands of the donee, is given only for the gift-tax that is payable and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place any material that may be available before them to satisfy the officer that the tax can still be recovered from the donors. Ultimately, if the petitioners are being made liable for the payment of gift-tax, the officer even on those cases, must have due regard to the provisions of the proviso to section 29 of the Act." From the above, it is clear that the GTO has first to form an opinion as to the invokability of section 29 and issue notice to the donees so that the donees could object in case the circumstances justify such objections. In fact, it is precisely the case of the taxpayer in this case that she has such objections inasmuch as the estate, in her opinion, is capable of meeting the liability and that such liability in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ift-tax specified in the demand notice as payable by the donee-respondent in this case. Hence, even this argument of the learned departmental representative has to be stated only to be rejected. 5. As a final alternative, it was contended that we should authorise the GTO to impose the tax after due notice. He apprehended that the cancellation may be interpreted by the taxpayer as a direction not to pursue the matter further. Even this argument, in our opinion, is not only justified on the facts, but even otherwise does not warrant interference with the order of the first appellate authority. Any order passed without observing the principles of natural justice can either be set aside or cancelled. In either case, it is certainly open to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
