9911796707
TMI Blog1985 (8) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed to income-tax and wealth-tax. On or about June 20, 1966, the petitioner transferred to his wife, Kalpana Sen, 500 ordinary shares of the company of the face value of Rs. 10 each. On the same date, that is, June 20, 1966, the petitioner also transferred 2,500 shares of Rs. 10 each to his son, Dilip Sen, who had attained majority on May 12, 1966. On September 28, 1966, the petitioner created a trust and transferred to the trustees 3,500 ordinary shares of the company for meeting the expenses of education and other vocational training of his son, Dilip Sen, in India or outside India. The case of the petitioner is that the petitioner was under a legal obligation to maintain his wife and also to maintain and educate his children ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actory and sketchy. Vedprakash Tyagi, who has affirmed the affidavit, has not stated who was the officer-in-charge of the petitioner's case at the material time. He has not specifically denied the allegations made by the petitioner that all the details of the share transfers were disclosed in the wealth-tax case of the petitioner and the officer concerned was fully aware of the share transfers and yet did not choose to issue any notice for filing the return under the Gift-tax Act. Detailed allegations made in paragraph 7 of the petition have been denied generally " save and except what appears from the records of the case ". In these circumstances, the allegation that the Gift-tax Officer did not issue any notice to the petitioner to file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... file a return of the same as required under section 13(1) of the Gift-tax Act. The assessee had no reasonable cause or excuse for his failure to file in due time the return under section 13(2) of the same Act in respect of the said gifts. " This charge can only be levelled on the basis of a prima facie finding that there was a taxable gift and the petitioner has not filed a return in respect of that gift as required under section 13(1) of the Gift-tax Act. Whether there is a taxable gift or not can only be decided in a proper assessment proceeding. If the petitioner's contention is correct that the transfers of shares were made in the discharge of his legal obligation to maintain his wife and children and to pay the expenses of the childr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e did not constitute gifts within the meaning of the Gift-tax Act. He did not conceal the transactions but disclosed them in his wealth-tax returns, A complaint cannot be lodged only on the prima facie satisfaction that a gift has been made. There has to be a further satisfaction that a return had not been furnished without any reasonable cause. If the Gift-tax Officer was of the view that the gifts were assessable under the Gift-tax Act and the assessee was under an obligation to file a return in respect of that gift, he should have called upon the assessee to file a return of income. The petitioner was right in his contention that the officer who was in charge of the assessment of the petitioner under the Income-tax Act, the Wealth-tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. It appears that the criminal case has been started without any application of mind. criminal complaint in exercise of statutory powers should not be lodged in such a casual manner. The prayer of Mr. Prosad, that if this case is adjourned for a week, the gift-tax assessment proceedings can be completed is incomprehensible. I fail to see how the gift-tax proceedings can be completed at this stage without serving any notice under section 16. A notice can only be served under section 16(1)(a) at any time within 8 years of the end of the relevant assessment year. The case of the petitioner is that no notice under section 16 has at all been issued for the assessment year 1967-68. I fail to see how the assessment proceedings can at all be ini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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