GAINDI Vs. UNION OF INDIA

JUDGEMENT

(1.) SHRIMATI Gaindi Petitioner by means of this petition under Art. 226 of the constitution of India seeks to challenge the vires of the Gift-tax Act No. 18 of 1958 (hereinafter referred to as the Act ).

(2.) ACCORDING to the allegations of the petitioner she made a gift of agricultural land measuring 1335 Bighas and 11 biswas situated in village Muana, District karnal in favour of her relatives as per registered gift deed dated the 14th April, 1959. A notice dated 19th December 1960 was received by the petitioner from the gift-tax Officer Karnal for filing of return of the gifts made by her under section 13 (2) of the Act. The petitioner submitted a return giving the necessary details of the gift. Various dates thereafter were given to the petitioner for giving proof of the petitioner on 31st August 1961 from the Gift tax Officer with respect tot he return filed by her. The case of the petitioner is that the Gift tax Officer had no jurisdiction to issue notices under Ss. 13 (2) and 15 (2) of the Act and the above-mentioned notices are illegal ultra vires and without jurisdiction. It is asserted that the Parliament had no power to legislate with respect to agricultural land and it is only the state legislature which is empowered to make a law with respect to tax on agricultural land.

(3.) THE petition has been resisted by the Union of India and the Gift-tax Officer who have been imploded as respondents, and it is averred on their behalf that the impugned notices are legal and inter vires. According further to the respondents the Parliament had the power to enact the Act by virtue of the residuary powers if taxation mentioned in Article 248 (2) and Entry 97 in list I of the Seventh Schedule to the Constitution.