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TMI Blog1980 (1) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1970 and 1st May, 1970. The WTO found that the above gifts were stated to have been made by way of book entries in the books of account of the assessee maintained for her money lending business. He found that there was no dispute that no money was actually delivered by the assessee to the donees who were minors or to the guardian of the minors and on those dates only credits were made in their names to the debit of the assessee. He further found that on the respective dates cash balances were only Rs. 9,130 Rs. 11,810 and Rs. 6,810. On the grounds that the gifts were made by way of book entries in the books of account maintained by the assessee, that there were no sufficient cash balances on the respective dates of gifts and that no attem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the provisions of s. 4(5A) of the WT Act, which according to him, would be applicable to all the years under appeal, though it was introduced in the Statute book w.e.f. 1st April, 1976 by the Taxation Laws (Amendment) Act, 1975. 4. On behalf of the assessee, reliance was placed on the order of the AAC. The learned counsel for the assessee submitted that the ruling of the Punjab and Haryana High Court should not be followed. He referred us to the ruling of the Madras High Court in CED vs. V.S. Suryanarayanan(2), and the Full Bench decision of the Madras High Court in CED vs. Leelavathi Devi(3). He further submitted that the provisions of s. 4(5A) of the WT Act would apply only to gifts made subsequent to 1st April, 1976 and it would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged by the assessee are chargeable to GT. Merely because it was charged to GT, it does not automatically follow that it is chargeable to gift-tax. It may be that the gift-tax assessments were wrongly made. Therefore, we have to find out whether there is a valid gift by assessee to her minor children on 31st March, 1969, 31st March, 1970 and 1st May, 1970 as claimed by her. The gifts claimed to have been made were of Rs. 12,000 each. On the respective dates admittedly the assessee did not have the requisite cash balance. Therefore, there can be no valid gift of Rs. 12,000 each on the respective dates. The learned counsel raised an alternative argument that at least to the extent of the cash balances available on the respective dates, viz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was found in those cases that in the proprietory concern of the assessee, who made the gifts by means of entries in the books of account, the amount gifted was available while such is not the case in the instant case. We have, therefore, no hesitation in accepting the Revenue's claim that there were no valid gifts of Rs. 12,000 each aggregating to Rs. 36,000 to the three minors of the assessee and consequently the sum of Rs. 36,000 is liable to be included in the net wealth of the assessee for all the years under appeal. 6. Before parting with the case, we would refer to the arguments advanced before us on the basis of s. 4(5A) of the WT Act. The learned departmental representative contended that s. 4(5A) would apply to gifts whenever ..... X X X X Extracts X X X X X X X X Extracts X X X X
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