COMMISSIONER OF GIFT TAX Vs. NANDKISHORE SAKARLAL INDL

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Ahmedabad Bench "A" has referred the following question of law for the opinion of this Court under Section 26 of the Gift Tax Act, 1958 :

(2.) The assessee - H.U.F. filed gift tax return on 30th November 1971 showing value of taxable gift of Rs. Nil for the year relevant to the Assessment Year 1971-72. On the fresh assessment which was done pursuant to the appellate orders, the Gift Tax Officer held by his order dated 30th March 1982 that, on exercising the power of revocation under clause (15) of the trust deed dated 11-4-1961, that earlier deed ceased to exist in law and a new trust came into existence by virtue of the deed dated 31st December 1970 and therefore, the assessee was liable to pay gift tax in respect of the property transferred for which the trust was created under each of the trust deeds. The Commissioner upheld the orders of the G.T.O.

(3.) When the matter was carried to the Tribunal, in the Revenue Appeal Nos. 930 to 933 / AHD / 1986, from which the present reference arises, two Members of the Bench differed and their opinions were referred to a third member, who expressed the view that the assessee was not liable to pay gift tax in respect of the declaration made on 31st December 1970.