9911796707
TMI Blog1993 (10) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... the Reserve Bank of India, Calcutta on 28-1-1981. The assessee filed the Gift-tax Return on 26-7-1983. The Assessing Officer completed the assessment on a total taxable gift of Rs. 1,28,574. The net tax payable thereon after deducting the tax already paid was determined at Rs. 2,264. For the default in the filing of the return, the Assessing Officer initiated penalty proceedings under section 17(1)(a) of the G.T. Act. Rejecting the explanation offered, the Assessing Officer levied penalty @ 2% of the assessed tax of Rs. 17,964 for a default of 24 months. 3. Aggrieved by the said order, the assessee took up the matter in appeal before the Dy. CGT(A) and it was claimed that the assessee should have been given rebate of advance-tax under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... representative appeared and reiterated the same submissions as placed before the Dy. CGT(A). After hearing Sri S.K. Lahiri, ld senior departmental representative, we are of the view that there is considerable merit in the contentions of the assessee. 6. Dealing first with the reasonableness of the cause of the delay, we are of the view that no material has been placed before the Assessing Officer nor the Dy. CGT(A) in regard to the non-availability of the Return form during the period from January 1981 to 26-7-1983. The assessee in this case submitted one letter dated 9-1-1981 intimating the taxable gift and requesting the GTO to send necessary challan along with the Gift-tax Return form. This letter was received in the office of the GTO o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt so paid limited to 1/10th of the tax on the gift if the gift-tax on the gift is deposited to the Treasury within 15 days. The section 18 is intended essentially for the rebate of 1/9th of the amount of chargeable gift-tax so paid. The assessee is entitled to such rebate on the actual tax on the taxable gift if the same is paid within 15 days. If not, the assessee cannot get the rebate of 1/9th of the amount so paid. However, there is no prohibition for giving the credit of the actual amount of tax payable on the gift paid by the assessee. In our view, there can be no denial of credit for tax paid by the assessee. Therefore, section 18(i) is inserted more as a measure for working out the extent to which the rebate can be allowed under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le cause failed to furnish the return is liable, in addition to the amount of gift-tax if any payable by him, a sum equal to two per cent of the assessed tax for every month during which the default continued. "Assessed tax" has been defined in the Explanation to mean gift-tax chargeable under the provisions of this Act as reduced by the amount, if any, for which credit is allowed under section 18. 9. From the order of the assessing officer dated 3-3-1986 it is seen that the taxable gift has been determined by him at Rs. 1,28,574. The chargeable gift-tax has been worked out by him at Rs. 17,964. The assessing officer did not allow the rebate of 1/9th of the amount so paid as contemplated under section 18(ii). He, however, gave full credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te when it is accepted by the Reserve Bank of India or Treasury and the date of acceptance of such cheque is treated as the date of receipt of the payment by the Govt. The copy of the challan receipt given to the assessee clearly indicated that the cheque was tendered for clearance on 28-1-1981 to the Reserve Bank of India, Calcutta. The said date clearly comes beyond 15 days from the date of gift of 7-1-1981. Therefore, no rebate as contemplated under section 18(ii) of the GT Act can be given on this amount. The assessing officer is accordingly directed to recompute the penalty leviable on the basis of the net tax payable as computed by him in the assessment order under section 15(3) on 3-3-1986. 11. In the result, the appeal shall be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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