COMMISSIONER OF GIFT TAX Vs. A C MAHESH

JUDGEMENT

(1.) THE question referred to us is with regard to maintainability of the appeal by a donee against whom recovery proceedings were initiated under Section 29 of the Gift-tax Act, 1958 (in short "the Act"). THE assessment years in question are 1966-67 and 1973-74.

(2.) THE assessment was made by the assessing authority against the legal representatives of the donor from whom the donees have received gifts. Without taking any proceedings against those legal representatives of the donor for the recovery of the amount of tax, recovery proceedings were instituted against the donees under Section 29 of the Act. THE donees appealed against that order to the Appellate Assistant Commissioner, who allowed the appeal. THE Department carried the matter further to the Tribunal contending that the appeals should not have been entertained at the instance of the donees. THE Tribunal rejected the points raised by the Revenue and held that the appeal was maintainable and also that the order of the Appellate Assistant Commissioner was right on the merits as well.

(3.) SECTION 22(1), Clause (a), enables a person to object to the value of taxable gifts determined under the Act to file an appeal. Clause (b) enables the persons objecting to the amount of gift-tax determined as payable by him under the Act to file an appeal. The other Clauses (c) to (g) enable persons objecting to liability to be assessed under the Act; objecting to imposition of penalty by the Assessing Officer under SECTION 17, objecting to an order made by the Assessing Officer under SECTION 20(2), objecting to the penalty imposed by the Assessing Officer under SECTION 33 read with SECTION 221(1) of the Income-tax Act; and persons objecting to an order of the Assessing Officer under SECTION 34, to file appeals. While some of the clauses of SECTION 22(1) come to the rescue only of assessees like SECTION 22(1)(d), (e) and (g), the other clauses are applicable to non-assessee as well.