1989 (9) TMI 148 - AT - Income Tax

Summary

Issues:
1. Interpretation of exemption under s. 5(1)(ii)(a) of GT Act, 1958 without original documentary evidence.
2. Determination of the amount involved for gift-tax assessment based on remittances through banking channels.

Analysis:

Issue 1: Interpretation of exemption under s. 5(1)(ii)(a) without original documentary evidence
The case involved a dispute regarding the applicability of exemption under s. 5(1)(ii)(a) of the GT Act, 1958 to a gift made by the assessee to his sister. The assessee claimed exemption based on the gift being made outside India. The GTO assessed the gift at Rs. 12 lakhs, while the assessee contended it was Rs. 10 lakhs. The CGT(A) found that the assessee failed to produce original correspondence as evidence. The Tribunal examined documents showing foreign remittances and concluded that the gift of Rs. 10 lakhs was made outside India, exempting it from gift-tax under s. 5(1)(ii)(a). The Tribunal relied on the circumstances indicating the gift was initiated by the donee and the circular of the Board supporting exemption in such cases. The Tribunal's decision was based on factual findings and no question of law arose.

Issue 2: Determination of the amount involved for gift-tax assessment
The second issue revolved around the determination of the gift amount for tax assessment. The GTO assessed the gift at Rs. 12 lakhs, while the assessee maintained it was Rs. 10 lakhs. The Tribunal found no evidence supporting the higher amount and concluded that the proposed question regarding the amount of the gift was not referable as a question of law. The Tribunal rejected the application for reference, emphasizing the lack of material to establish the gift amount at Rs. 12 lakhs, thereby affirming the assessment at Rs. 10 lakhs.

In conclusion, the Tribunal dismissed the application for reference as no questions of law were found to arise from the issues raised. The judgment highlighted the importance of documentary evidence in tax assessments and affirmed the Tribunal's decision based on factual findings and legal provisions regarding gift-tax exemptions.