COMMISSIONER OF INCOME TAX Vs. RAMESHWAR DAYAL HUF

JUDGEMENT

(1.) THESE income -tax references raise a common question about gifts made by the Karta of a HUF in favour of the coparceners/near relations. The references pertain to the asst. yrs. 1970 -71, 1975 -76 and 1976 -77. The question of law framed in these income -tax references are as under : IT Ref. No. 12 of 1981 :

(2.) AT the outset learned counsel for the assessee has submitted that the gift -tax authorities has accepted the returns filed by the assessee for the assessment years under reference meaning thereby that the very gifts which are being questioned in the income -tax proceedings, have been accepted as valid by the GTO. The same has become final. This fact is not disputed by learned counsel appearing for the Revenue. Learned counsel for the assessee has relied upon in CWT/CIT vs. K.N. Shanmughasundaram (1998) 232 ITR 354 (Del) : TC S65.452 to urge that once the gifts are accepted as valid in the assessment proceedings under the GT Act, the IT authorities cannot challenge or dispute the same. In the case relied upon by learned counsel for the assessee, the Supreme Court observed as under :

(3.) BEFORE we conclude, we would only like to note that the gifts in question were made in 1970 -71 and their impact/validity came in for consideration before the IT authorities year after. Learned counsel for the assessee points out that except the years in consideration in these references, the gifts were accepted as valid by the IT authorities with respect to rest of the assessment years. For the foregoing reasons, all the questions referred to the opinion of this Court are answered in favour of the assessee and against the Revenue. The references stand disposed of.