MASTER RAJU SAIGAL TRUST Vs. GIFT TAX OFFICER

JUDGEMENT

(1.) The following questions of law arise for consideration :

(2.) The brief facts are that the assessee filed gift tax return on 16.4.1987. This return was filed pursuant to a notice under Section 16(1)(a) of the Gift Tax Act. After the assessee filed the return, the Gift Tax Officer (GTO) did not take any further action and on 16.3.1989, issued notice under Section 15(2) of the Gift Tax Act, 1958 ('the Act'). He thereafter proceeded to complete the assessment and sought to bring to tax on the total gift, the value of which was determined at Rs. 19,90,840/-. The assessee appealed to the Commissioner, which was disposed of by confirming the order of the GTO. The assessee appealed further to ITAT, who set aside the orders of the Commissioner and directed the AO to proceed and complete the assessment in accordance with the provisions of law. The order of the ITAT was served upon revenue on 19.11.1998. The GTO proceeded to issue notice much later on 16.3.2000 under Section 15(2). By this time, an amendment had been brought about to the Gift Tax Act by way of proviso to Section 15(2), which imposed the time limit of six months, from the end of the financial year in which the gift tax return is filed or six months from the date of filing of return whichever was later. The assessee contended that the notice issued on 16.3.2000 was beyond the period of time. The AO, however, rejected the contention and proceeded to bring to tax the amounts. The further appeal to the Commissioner was likewise unsuccessful. The ITAT by its order dated 11.2007 affirmed the order of the CIT(A). The ITAT rejected the assessee's contention holding that there was no time period provided in respect of the transactions, which concerns the present assessment.

(3.) The assessee argues that the remand order made by the ITAT in the first instance was not absolute in the sense that when the ITAT on 18.1998 set aside the order of the GTO and the Commissioner of Gift Tax, the direction given was to proceed as follows: