9911796707
TMI Blog2008 (12) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh passed in GTA No. 13/Chandi/1998 on 23-5-2000 for the assessment year 1989-90, (by virtue of Section 76 of the Finance Act, 1998, Section 27A of the Wealth-tax Act has been made applicable to the Gift-tax cases), proposing to raise following question of law: Whether on the Facts and Circumstances of the Case, the ITAT was rig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate authority. On further appeal of the assessee, the Tribunal set aside the assessment. It was held that bonus shares were part and parcel of the original shares and the same became property of the transferee without any gift tax, as per order of assessment for the assessment year 1982-83. As regards the judgment of the Hon'ble Supreme Court in Escorts Farms (Ramgarh) Ltd v. CIT [1996] 222 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck to the donor after revocation of gift. Referring to the contention raised on behalf of the revenue, that even after revocation of the gift, value of bonus shares in the hands of the donee is liable to gift tax under Section 6(2) of the Act, it was observed that that aspect has not been gone into in the assessment order and further proceedings and, therefore, could not be gone into by this Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity shares. The said judgment has been distinguished by the Tribunal on the ground that the same related to computation of capital gains. The fact remains that the principle laid down therein that bonus shares were income from the original shares and have the effect of reducing the value of original shares, remained undisputed. To the extent of value of bonus shares, gift tax was clearly attracted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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