COMMISSIONER OF GIFT TAX Vs. SAMPANGIRAM B K

JUDGEMENT

(1.) IN this reference made under S.26(1) of the GT Act, 1958 (Central Act 18 of 1958) ("the Act"), the Tribunal, Bangalore Bench, Bangalore ("Tribunal"), at the instance of the Revenue has referred the following question of law for the opinion of this Court:

(2.) IN order to appreciate this question, it is necessary to notice the facts that are not also in dispute in the first instance. As the Karta or the manager of a joint Hindu family (HUF) consisting of himself, his wife and children, the assessee by a deed of gift dated March 14, 1973 (annexure-C), gifted certain properties of the HUF detailed in the schedule to that deed of the value of Rs. 60,000 to his wife, Smt. B. S.Narasamma. For the asst. yr. 1973-74 relevant to the previous year ending on March 31, 1973, the assessee filed his return under the Act before XIVth GTO, Circle-I, Bangalore, claiming exemption under S.5 of the Act to the extent of a sum of Rs. 50,000 gifted to his wife with which claim only we are concerned in this case. On February 10, 1975, the GTO completed the assessment allowing the said exemption claimed by the assessee without critically examining the same (annexure-A).

(3.) SRI SRInivasan has urged that a gift made by the "Karta" as the "Karta" of the properties belonging to an HUF, on the plain language of S.5(1)(viii) of the Act, does not qualify for exemption.