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2005 (8) TMI 41 - BOMBAY HIGH COURTGift Tax Act, 1958 – Whether the transaction of gift of Rs. 1,00,000 made by the assessee in Kashmir in favour of Smt. Madhuri Joshi, r/o Pune, amounts to a colourable device to avoid tax - Gujarat High Court also in the case of CGT v. Dipak A. Sheth in an identical case has held that the Gift-tax Act extends to the whole of India except to the State of Jammu and Kashmir and if all the conditions necessary for claiming exemption under section 5(1)(ii) of the Act are fulfilled the assessee is entitled to get exemption. In the said case, the assessee who was not ordinarily resident in India had made a gift of cash amount of more than Rs. 1,00,000 in the State of Jammu and Kashmir and claimed exemption in respect of the said transaction. The High Court held that he was entitled to get the exemption and the gift was not taxable under the provisions of the Act. The ratio of this judgment in our view, is squarely applicable to the facts of the present case. In the result, the submissions made by Revenue cannot be accepted. The order passed by the Income-tax Appellate Tribunal and the Deputy Commissioner of Income-tax (Appeals) is, therefore, confirmed. The appeal is accordingly dismissed
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