VALSALA AMMA R Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) This is a reference made by the Madras Bench of the Income Tax Appellate Tribunal under S.26(1) of the Gift Tax Act, 1958 (hereinafter referred to as the Act) on the application of one Smt. R. Valsala Amma, who was assessed under the Act, along with her sister Smt. R. Rugmani Amma alias Subhadra Amma as an association of individuals for the year 1962 - 63 by the Gift Tax Officer, Palghat. The questions referred for decision are:

(2.) The applicant and her sister are the daughters of one Smt. Unni Ammalu Amma, who died on 2-5-1961. Both of them got a large number of properties under their mother's last will dated 4-12-1959. By a deed dated 7-6-1961, they effected a partition of all those properties between them, except two items of immovable properties in Palghat District. On 8-6-1961, they executed another deed, making a gift of those two properties in favour of their brother, Sri R. Rajan Menon. The Gift Tax Officer initiated proceedings to assess these ladies in respect of the said Gift. The applicant made a nil return and also wrote to the Gift Tax Officer by a letter dated 29-2-1964 stating that she was a permanent resident of Madras, that she made her income and other returns at Madras, and that the case file may be transferred to Madras City circle, if the gift tax officer so desired. Smt. Rugmini Amma made a return in respect of her one half share of the gifted properties. The Gift Tax Officer did not transfer the case; but he assessed them on the value of the gifted properties as an association of individuals.

(3.) The applicant filed an appeal before the Appellate Assistant Commissioner of Gift Tax. She raised these contentions before him: