9911796707
TMI Blog1996 (9) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the order dated March 22, 1988, of the Commissioner of Gift-tax under section 24(2) is not hit by the doctrine of merger though the assessment order had been the subject-matter of appeal to the Commissioner (Appeals) in view of clause (c) of the Explanation to section 24(2) inserted by the Finance Act, 1988, with effect from June 1, 1988 ? " The proceedings appeared before us on board with no appearance on behalf of the assessee on whose instance the proceedings are brought before us. We felt that in such a situation, we must have the other point of view in the adversary system of justice. By our earlier order, we requested Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the Commissioner of Gift-tax under section 24(2) of the Gift-tax Act, 1958, was passed on March 22, 1988. The said clause (c) has come into effect from June 1, 1988, obviously much thereafter. The said question No. 2 thus gets answered accordingly. The assessee, Shri G. Ramesan, executed a gift deed on July 14, 1980, and thereby agricultural lands admeasuring 11 cents situated at Jagathy and certain buildings, both old and new, standing on a plot of land admeasuring 37 cents, in favour of his second daughter, Manju Ramesan. Thereafter the assessee filed a gift-tax return on October 23, 1981, for the assessment year 1981-82. The return disclosed a taxable gift of Rs. 1,93,060. However, a revised return was also filed by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of these amounts of deposits. The Gift-tax Officer recorded that the gift is an onerous gift. To be precise, the Gift-tax Officer passed an order accepting the liability as stated above. Further travel of the proceedings before the Commissioner of Gift-tax, Karnataka (Central), Bangalore, is under section 24(2) of the Act. The discussion in regard thereto is in paragraph 4 onwards of the said order. The said authority held that the liability of Rs. 1,15,000 as held to be charged on the gift is factually incorrect. It is observed in this connection that the gift deed does not mention about this amount. The said authority also expressed doubt that there is material to show that the transaction is of an onerous gift. In this connection, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merits and in the said proceedings, it is held that the question of deduction of this liability of Rs. 1,15,000 could not be taken up as it was in favour of the assessee. The Commissioner held that it was in view of this position with regard to the question of the deduction not being the subject-matter of the appeal, that there is no merger as far as the order of the Commissioner of Income-tax (Appeals) is concerned and therefore can be the subject-matter of revision under section 24(2) of the Act. The assessee took up the matter before the Income-tax Appellate Tribunal, Cochin Bench. The Tribunal has also considered the question with regard to the claim of Rs. 1,15,000 as to whether it could be in the nature of a liability as a condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. In the first instance it is abundantly established that the document is silent. For the purpose of the gift-tax assessment one has to ascertain what exactly had been gifted and in regard thereto the document is the only source. The Tribunal (in paragraph 21 of its order) has already recorded that when one looks at the deed one finds that certain buildings and certain pieces of agricultural lands had been gifted and one does not find in the deed any reference either to the liability or to a charge having been created on the property in that regard. The Tribunal has also independently considered the joint affirmation by the four tenants. It is observed that the liability to pay back the security deposits got itself attached to the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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