CGT Vs. LATE H.H. BRAGWAT SINGH

JUDGEMENT

(1.) HEARD learned Counsel for the parties.

(2.) AT the directions of the High Court following question of law has been referred along with statement of case by the Tribunal in respect of gift -tax relating to assessment year under the GT Act, 1958:

(3.) THE assessment was completed on taxable gift of Rs. 3,84,800. Simultaneously proceedings to levy penalty under Section 17(1)(c) of the GT Act were initiated as according to GTO, the assessee has concealed particulars of taxable gift. After affording an opportunity to the assessee, the GTO levied penalty for Rs. 32,600. The Commissioner (Appeals) cancelled the penalty on the ground that the assessee had disclosed all material facts in the letter filed along with the return of income about the Hath Kharch allowance and although it was a good case for levy of gift -tax, it was not a fit case for levy of penalty under Section 17(1)(c). In second appeal, the Tribunal upheld the order of the Commissioner (Appeals).