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TMI Blog1983 (8) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... late Uttam Singh in Montgummary by way of gallantry award. When Shri Uttam Singh died in 1940, he left behind four sons including the assessee. The land left behind by Uttam Singh was, therefore, divided equally amongst the four brothers. 3. After the partition of India in 1947, Shri Sandhur Singh migrated to India and was allotted 30 acres of land in village Sarabha, District Ludhiana where he had 1 1/2 acres of land earlier. The brothers of Sandhur Singh also migrated to India and were allotted lands independently in lieu of the lands left behind by them in Pakistan. Shri Sandhur Singh had a son Shri Harvinder Singh and a grandson Shri Gursimrat Singh. The assessee transferred by means of a registered gift deed dated 13-3-1970, 119 kan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the matter at that and considered also on merits the value of the land transferred and came to the conclusion that if at all the value was to be taken if, without concession, the assessment was to be considered as valid, the value of the land should be Rs. 5,000 per acre as against Rs. 10,000 per acre determined by the GTO. But since he had annulled the assessment he had not given any directions with regard to the quantum of the gift to be taken. 5. The grievance of the revenue now before us is that the AAC erred in annulling the assessment holding that the agricultural lands in question belonged to the assessee-HUF and its transfer to his son by registered deed did not amount to a gift taxable under the Gift-tax Act, 1958 ('the Act'). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndividual. But for doing so he has to issue notice calling for a return in that status which was not done by him. The Hon'ble Rajasthan High Court in the case of CWT v. Ridhkaran [1972] 84 ITR 705 held that where in response to notice under section 14(2) of the Wealth-tax Act, 1957, to file the return of wealth, the assessee filed the return in the status of karta of undivided family, the WTO is not competent to assess him in the status of individual without serving with a notice to file fresh return as individual. This ratio applies to the facts of the case before us and, therefore, the first ground on which the assessment raised by the GTO is bad in law is that this has been raised on a different status than what was shown in the return a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 8 has not changed the position of Hindu law. In fact this was the proposition propounded by the revenue in the case of V.R.A. Manicka Mudaliar. But this view of the revenue was rejected by the Madras High Court because at that point of time, there was no decision of any Court taking a contrary view to that taken by the Allahabad High Court in the case of CIT v. Ram Rakshpal, Ashok Kumar [1968] 67 ITR 164 and the Assam and Nagaland High Court in the case of Ghasiram Agarwalla v. CGT [1968] 69 ITR 235. In a later judgment the Madras High Court in the case of P.L. Karuppan Chettiar has held that the effect of section 8 is directly derogatory of the law established according to Hindu law and therefore, the statutory provisions must pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court that if a provision of a statute can be reasonably interpreted in two ways, that interpretation which is favourable to the assessee has got to be accepted---CIT v. Naga Hills Tea Co. Ltd. [1973] 89 ITR 236 (SC). The Hon'ble Madras High Court in the case of CIT v. Simpson Co. [1980] 122 ITR 283 observed that ordinarily, any statute would have to be construed on the language it employs. But in the case of a fiscal statute, the rule is that if there are two ways in which a provision could be construed, the construction most beneficial to the subject should be adopted. The revenue wanted us that we should adopt the more reasonable view if there are judgments in support of the rival contentions. We are unable to appreciate this submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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