COMMISSIONER OF GIFT TAX Vs. JAYALAKSHMI DORAISWAMY

JUDGEMENT

(1.) AT the instance of the Revenue, the Appellate Tribunal has stated the case and referred the following questions of law for the assessment year 1971-72 under section 26(l) of the Gift-tax Act, 1958 (hereinafter referred to as "the Act").

(2.) THE assessee is assessed as an individual. THE original assessment for the assessment year 1971-72 was completed by the Gift-tax Officer. Later on, on the basis of the information collected, the Gift-tax Officer was of the view that there was an escapement of gift-tax and issued a notice calling upon the assessee to file the return. THE assessee filed a nil return in response to the reassessment notice. THE Gift-tax Officer, however, made the assessment on the assessee on the taxable value of the gift of Rs. 2,85,935 and levied a gift-tax of Rs. 51,735.

(3.) MR. C. V. Rajan, learned counsel appearing for the Revenue, submitted that the Appellate Tribunal was not correct in dismissing the appeal and the Tribunal should have seen that the transfer was for inadequate consideration and there are no valid or relevant materials for the Appellate Tribunal to come to the conclusion that the transfer was made for adequate consideration.