9911796707
TMI Blog1983 (4) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of CGT v. Smt. Kusumben D. Mahadevia [1980] 122 ITR 38 in order to determine the value of shares sold by the assessee-trust in respect of which deemed gift was subjected to tax by the GTO whereas the assessee in its cross-objection originally supported the order of the AAC but at the time of hearing before us, came forward with a newly raised legal plea that the assessee being a recognised charitable trust under the Income-tax Act, 1961 ('the 1961 Act') enjoys exemption under the 1961 Act as the same is not applicable to it as per section 45(e) of the Act and the assessment, therefore, should be annulled. The new contention raised before the Tribunal was purely legal and the same as such was permitted to be forwarded. 3. The fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuation laid down by the Supreme Court in the cases of CWT v. Mahadeo Jalan [1972] 86 ITR 621 and Smt. Kusumben D. Mahadevia. The AAC after considering the contentions from paras 3 to 6 of his order, came to a finding that rule 1D was not mandatory but directory in nature and restored the matter back to the file of the GTO with a direction to make a fresh assessment by valuing the shares according to the principles of valuation laid down by the Supreme Court in the above referred two judgments. 5. It is this action of the AAC which left the revenue and the assessee aggrieved. The revenue, as above said, challenges the action of setting aside whereas the assessee in its cross-objection has asked for annulment of the gift-tax assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome whereof is exempt from income-tax under section 11 or section 12 of the Income-tax Act". With this when we read the relevant sections 11 and 80G of the 1961 Act and go through the exemption certificate granted by the Commissioner, we are of the view that the gift-tax assessment deserves to be annulled and we, therefore, annul the same. Undoubtedly, there is difference in the instant case and other cases of Oswal group because the present assessee is a trust which enjoys exemption under section 80G and there being a specific provision in the form of section 45(e), the assessee could not be subjected to gift-tax even in respect of deemed gift and other questions, therefore, pertaining to valuation, etc., shall only be academic. 7. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
