COMMISSIONER OF GIFT TAX Vs. OM PARKASH MUNJAL

JUDGEMENT

(1.) THIS petition has been filed by the Revenue under s. 26(1) of the GT Act, 1958, proposing to question the correctness of Revenue.

(2.) THE assessee declared value of two types of gifts made during the assessment year : (i) outright gift, and (ii) revocable gift. With regard to the revocable gift, protective assessment was made. It was observed that revocable gifts were void as the assessee avoided the liability under the WT Act and also being against the provisions of s. 126 of the Transfer of Property Act.

(3.) THE assessee preferred an appeal. The appellate authority affirmed the finding that the revocable gifts were void but set aside the protective assessment as being without any legal basis. The assessee preferred further appeal to the Tribunal. The Tribunal accepted the plea of the assessee with regard to valuation of outright gifts and further held that the revocable gifts could not be held to be void as the same were recognised under the provisions of the special law, i.e., under s. 6(2) of the GT Act.