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2018 (3) TMI 478 - HC - Income TaxRe-assessment proceedings initiated u/s 16 of the Gift Tax Act - Whether the period of 12 months or 6 months as prescribed in proviso to Section 15(2) of the Gift Tax Act, 1958, is applicable to re-assessment proceedings initiated? - Held that:- It is quite evident that the assessee’s return in respect of the transaction which occurred in 1983, became the subject matter of the notice by the Gift Tax officials in March, 1987, which resulted in the filing of a return on 16.4.1987. The first round of litigation resulted in finality of one aspect i.e. though, notice u/s 15(2) was issued in terms of the record, it was only served upon the assessee. Such being the case, when the ITAT rendered its findings, limitation prescribed by the amendment had come into force. Even otherwise, the ITAT order dated 13.8.98 meant, in the opinion of this Court, a direction to the GTO to assume a jurisdiction, which he never possessed in the first instance, given that the amendment had come into force. Absence of service of notice meant that, in fact, there was no notice and therefore, no valid assessment. However, proceeding to hold otherwise and sustain the findings of the GTO and the lower appellate authority, the ITAT clearly erred in law. The questions of law framed are therefore, answered in favour of the assessee
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