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TMI Blog2024 (11) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... State Bank of India, Patiala was available before the concerned Commissioner Gift Tax and it clearly reflected that from the account relating to Mohinder Kaur Trust Privy Purse, cheques and cash were released in favour of the said Trust amounting to Rs. 6,00,000/- and to Amarinder Singh Trust of Rs. 4,00,000/- in all on various dates which would further require adjudication. We, therefore, find that the order passed by the ITAT hinges on perversity and does not take into account the record which was available with them as the case had been travelled from the Commissioner Gift Tax. The answer to question No.(a) is, therefore, accordingly found to be in favour of the appellant-Assessee and it is held that the gift amount was made out of Priv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been recorded by the authorities below that the gift has been made out of the Privy Purse. However, in these cases for the reasons mentioned above, we want the tribunal to bifurcate the two issues and given separate independent findings on each of the issues and, consequently, we direct the Tribunal to de novo examine this point on its own merits uninfluenced by the observations of the High Court in the impugned judgment and its own observations in the earlier order. (b) Whether the transfer of agricultural lands admeasuring 425 bhigas of the value of Rs. 3,82,500/- was at all exigible to tax under the Gift Tax Act, 1958, particularly after the enactment of the Hindu Succession Act, 1956? 3. While deciding the question No.(a) as above, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Privy Purse and they are exempt in view of section 5 (1) (xvi) of the Act provides for exemption of gifts made out of Privy Purse where the same have been made to relatives, dependant for maintenance and support. Therefore, in the absence of the relevant material before us, it is neither possible to test the finding recorded by the Commissioner of Gift-tax(A) and nor rector and independent finding that the cash gifts are given out of Privy Purse amounts. The aforesaid is important because the finding of the Assessing Officer is against the assessee and even the Commissioner of Gift-tax (A) has not referred to any clinching material or basis to justify his finding. Therefore, the claim of exemption u/s 5 (1) (xvi) of the Act cannot be fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not been held to be perverse, there was no occasion for the appellant-Assessee to be asked independently to again provide the proof other than what was on record before the Commissioner Gift Tax in support of his submission that the gift amount of Rs. 10,00,000/- were made out of the Privy Purse. He further submits that the ITAT was not only required essentially to give findings relating to gift amount to be made as Privy Purse, but was also required to look into effect of the provisions of the Hindu Succession Act, 1956 having come into force and whether the said amount would be treated as HUF. 5. Learned counsel for the respondent submits that once the case was remanded to the ITAT, it was the duty of the Assessee to again produce the rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese cash gifts it is quite clear that these were made out the amounts available with the appellant either in cash as show in the Wealth-tax returns or in the Bank Account No. 956 in the State Bank of India, Patiala, wherein the deposits were made from the receipts of the Privy Purse against which the various cheques were issued in favour of the two trusts in question. Hence after going through the details furnished by the A.R. these does not remain any doubt about the fact that the gifts were made out of the Privy Purse amounts as under: - I. Maharani Mohinder Kaur Trust 5.11.1971 By Cheque Rs. 25,000/- 18.12.1971 By Cash Rs. 3,45,000/- 18.12.1971 By Cash Rs. 2,30,000/- Rs. 6,00,000/- II. Yuvraj Amrinder Singh Trust 05.11.1971 By Cheque Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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