COMMISSIONER OF INCOMETAX Vs. KAMALA DEVI

JUDGEMENT

(1.) THIS is a gift-tax reference under S. 26(1) of the GT Act, 1958 ('the Act') at the instance of the assessee and the following question of law have been referred by the Tribunal for answer of this Court:

(2.) THE brief facts giving rise to this reference are that the assessee made a settlement deed in favour of her daughter-in-law on 13th April, 1972. The assessee filed the gift-tax return disclosing taxable gift of Rs. 2.30 laksh on 1st July, 1972 for the asst. yr. 1973-74 in respect of the property settled by her as per the deed of settlement dt. 13th April, 1972. The GTO treated this return as invalid and non est because it was filed before the commencement of the assessment year. The assessee also filed a duplicate return on 22nd Aug., 1997 and it was treated as invalid. The AO issued notice under S. 16(1) of the Act on 11th Feb., 1982 and in response to this, the assessee filed reply on 15th Feb., 1982, the AO held that it had already become barred by time; therefore, the proceeding under S. 16(1)was initiated. The AO did not accept the request of the assessee and finally assessed the income of the assessee of Rs. 2.30 lakhs under S. 15(5) of the Act, on 31st March, 1986.

(3.) WE have heard the learned counsel for the parties and perused the record.