9911796707
TMI Blog1980 (4) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... to 7 per cent. The assessee company lent those amounts to Karumuttu Thiagarajan Chettiar and his wife charging interest at half per cent. The GTO came to the conclusion that the assessee-company should have charged interest on the loans advanced by it to Karumuttu Thiagarajan Chettiar, his wife and sons at least at the rate of 6 per cent. and not having done so the difference in the interest at the rate of 5 1/2% should be taken as having been gifted to those persons by the assessee-company. The GTO concluded that such gifts amounted to Rs. 1,58,929 for the assessment year 1962-63 and Rs. 2,65,945 for the assessment year 1963-64 and levied a gift-tax of Rs. 8,914 for the first year and Rs. 20,714 for the second year. On appeal, the AAC held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty' within the meaning of the Gift-tax Act, 1958 ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee had not forgone or given up anything in the transaction involved ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that there was no deemed gift within the extended meaning of sections 2(xxiv), 4(a) and 4(c) of the Gift-tax Act, 1958 ? " The learned counsel for the revenue relying on the definition of transfer of property under s. 2(xxiv) of the G.T. Act and also the definition of " property under s. 2(xxii) of the G.T. Act, contended that there has been a transfer of property for inadequate consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion cannot be said to fall within the ambit of s. 4(1)(c). In the assessment order made by the GTO, there is no indication to show that to the satisfaction of the GTO the surrender by the assessee-company in the form of charging lesser rate of interest was not bona fide. Section 4(1)(c) is, therefore, not applicable to this case. The Tribunal was, therefore, fully justified in coming to the conclusion that there was no question of any gift involved when the assessee charged half a per cent. interest on the loans advanced to Karumuttu Thiagarajan Chettiar, his wife and sons. All the questions referred are, therefore, answered in the affirmative and in favour of the assessee. The assessee is entitled to costs. Counsel's fee Rs. 500 one set. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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