LAWS(CAL)-1994-9-28

BATUK NATH BHATTACHARJEE Vs. COMMISSIONER OF GIFT TAX

Decided On September 30, 1994
BATUK NATH BHATTACHARJEE Appellant
V/S
COMMISSIONER OF GIFT TAX Respondents

JUDGEMENT

(1.) The facts, inter alia, leading to this writ petition are that the petitioner is the son of Debendra Nath Bhattacharjee, since deceased, an eminent industrialist. The said Debendra Nath Bhattacharjee died intestate on January 18, 1978, leaving behind him amongst other heirs and legal representatives, the petitioner.

(2.) During the lifetime of the said Debendra Nath Bhattacharjee, since deceased, he gifted in or about October, 1975, 403 shares of British Electrical and Pumps Private Limited (hereinafter referred to as "the said company") to the petitioner during the previous year ending on March 31, 1976, relevant to the assessment year 1976-77, and further 1,750 shares in or about December, 1977, of the said company to the petitioner's wife, Smt. Sovona Bhattacharjee, during the previous year ending on March 31, 1978, relevant to the assessment year 1978-79.

(3.) The returns of gift-tax under Section 13(1) of the Gift-tax Act, 1958 (hereinafter referred to as "the said Act"), were filed for both the said assessment years, that is to say, the assessment years 1976-77 and 1978-79, within the due date. In the said returns, the donor (hereinafter referred to as "the said assessee") had valued the shares on the basis of the balance-sheet of the company as at March 31, 1975, in respect of 403 shares of the said company being the subject-matter of the assessment year 1976-77. So far as the valuation of 1,750 shares which is the subject-matter of assessment for the assessment year 1978-79 is concerned, the valuation was based on the basis of the balance-sheet as at March 31, 1977.