S.M. WAHI Vs. DIRECTOR OF INCOME TAX

JUDGEMENT

(1.) Though this appeal was admitted on a limited question formulated by the appellant as Question of Law No. (d), in order to appreciate that question, some broad factual narration would be needed.

(2.) The appellant is a Non- Resident Indian and Swiss National. He is the uncle of one Ms. Reeta Wahi. The property bearing No.13, Kautilaya Marg, Chanakyapuri, New Delhi (hereinafter referred to as "the subject property) was purchased in March 1994 in the name of Reeta Wahi for a consideration of Rs.1.49 crores. The entire amount for purchase of this property was advanced by M/s. Vaishali International and Management Resources Ltd. (hereinafter referred to as the "VIMAR") to Reeta Wahi. This company, VIMAR, is substantially owned by the appellant, who was holding 97% shares therein and 3% share holding was with Reeta Wahi.

(3.) The appellant made gifts certain amounts from time to time totaling Rs.1,44,62,500/- to Reeta Wahi. These moneys received by Reeta Wahi in the form of gift from the appellant were utilized for repayment of loan to M/s. VIMAR.