H P NANDA Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition was filed by Shri H. P. Nanda seeking a writ or order or direction in the nature of certiorari for the quashing of the assessment order dated 31st July, 1962. The said order was confirmed on appeal by an order dated 10th July, 1963.

(2.) There are two aspects of the matter which the petitioner agitates. The first is that he made a declaration in respect of certain shares owned by him and through that declaration he threw those shares into the hotch pot of his Hindu Undivided Family. The declaration as contained in paragraph 2 of the writ petition is as under :-

(3.) The counsel for the petitioner contends that the aforestated declaration did not constitute a gift. The other point raised is that in view of the provisions contained in section 5(1) (vii) of the Gift Tax Act of 1958, the amount gifted by the petitioner to his mother was not chargeable to tax.