9911796707
TMI Blog2024 (11) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... The building was also duly assessed to luxury tax. According to the petitioner, the petitioner has also discharged the liability towards luxury tax, and in the year 2018 he transferred/settled a portion of the building in favour of his wife, therefore, the petitioner is no longer liable to pay luxury tax. This contention of the petitioner cannot be accepted. As rightly pointed out by the learned Senior Government Pleader, if the contention of the learned counsel for the petitioner is accepted, any person who is liable to pay luxury tax under the provisions of Section 5A of the 1975 Act could escape from the liability by transferring a portion of the building to his/her spouse or a near relative. The fact remains that the entire building con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educed to 162.30 Sq.m, which is below the limit for levy of luxury tax. The petitioner is therefore before this Court seeking the following reliefs. a) Issue a writ, direction or order directing the respondents to take into consideration the transfer of 1st floor of the residential building as per Ext. P2 and to uphold that the petitioner is the owner of the remaining building alone and same is not liable for payment of luxury tax. b) To order the refund of luxury tax paid by the petitioner for the period after the transfer of ownership of the 1st floor . 3. The learned counsel appearing for the petitioner refers to the provisions of the 1975 Act and submits that there can be a levy of luxury tax at the hands of the petitioner only if the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Section 5A of the 1975 Act, and thus it was liable to the levy of luxury tax under that provision. The building was also duly assessed to luxury tax. According to the petitioner, the petitioner has also discharged the liability towards luxury tax, and in the year 2018 he transferred/settled a portion of the building in favour of his wife, therefore, the petitioner is no longer liable to pay luxury tax. This contention of the petitioner cannot be accepted. As rightly pointed out by the learned Senior Government Pleader, if the contention of the learned counsel for the petitioner is accepted, any person who is liable to pay luxury tax under the provisions of Section 5A of the 1975 Act could escape from the liability by transferring a portio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -gatherer and his perhaps not so skilful, advisers on the other side. Then again there is the sense of injustice and inequality which tax avoidance arouses in the breasts of those who are unwilling or unable to profit by it . Last but not the least is the ethics (to be precise, the lack of it) of transferring the burden of tax liability to the shoulders of the guideless, good citizens from those of the artful dodgers . It may, indeed, be difficult for lesser mortals to attain the state of mind of Mr Justice Holmes, who said, Taxes are what we pay for civilized society. I like to pay taxes. With them I buy civilization . But, surely, it is high time for the judiciary in India too to part its ways from the principle of Westminster and the all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Ramsay [1982 AC 300 : (1981) 1 All ER 865] , Burmah Oil [1982 STC 30] and Dawson [(1984) 1 All ER 530], to expose the devices for what they really are and to refuse to give judicial benediction. 6. In the very same case, the judgment for the majority was delivered by RANGANATH MISRA, J. The concluding paragraphs of the judgment (for the majority) read thus:- 44. We may also recall the observations of Viscount Simon in Latilla v. I.R. [25 TC 107] : Of recent years much ingenuity has been expended in certain quarters in attempting to devise methods of disposition of income by which those who were prepared to adopt them might enjoy the benefits of residence in this country while receiving the equivalent of such income, without sharing in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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