COMMISSIONER OF GIFT TAX Vs. MADAN MOHAN

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal Delhi Bench 'A' (hereinafter called the Tribunal) has referred the following two questions for the opinion of this Court under Section 26 (1) of the Gift Tax Act, 1958 (hereinafter called the Act):--

(2.) THE facts stated in the statement of the case submitted by the Tribunal are that Madan Mohan assessee gifted one bungalow situate at Jaipur to his wife and three sons during the accounting period ending on 31st March, 1963. THE Gift Tax Officer, B Ward, Jaipur taxed the value of gift at Rs. 91,250 by his order dated 30th November, 1963. Before him the question was raised that the provisions of the Act were ultra vires in so far as they purported to tax the gift on land and building because this subject fell under entry 18 read with entry 49 of List II (State List) of Seventh Schedule to the Constitution. This argument was negatived by the Gift Tax Officer. THE assessee went in appeal to the Appellate Assistant Commissioner and the same contention was raised before him, but it was rejected by him also.