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TMI Blog2008 (10) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... tal gains. The total income declared by the assessee included a sum of Rs. 1,04,840 referable to the income under the head " Capital gains" . Though the return was originally processed under section 143(1)(a) of the Income-tax Act, 1961, the Revenue authorities chose to reopen the assessment by issuing notice under section 148 of the Act on the ground that the computation of income under the head " Capital gains" is not in accordance with law. During the course of assessment proceedings, the assessee explained that her husband had purchased the property in court auction in 1980 for Rs. 1,33,000 and dis charged a debt of Rs. 1,19,747 and spent a further amount of Rs. 6,650 towards stamp duty. The cost of the building thus works out to Rs.2,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sale : Price Rs. 9,56,000 Less : Indexed cost of acquisition : Assessee's 1/5th share in the value of property Rs. 2,59,397 51,879 x 305/100 Rs. 1,58,231 Since the assessee acquired 4/5th share for Rs.60,000 in 1985 Rs. 1,37,594 Rs. 2,95,825 60,000 x 305/133 Rs. 6,60,175 The assessee's plea was that the expression "gift" in section 49 of the Income-tax Act, includes a deemed gift within the meaning of section 4(1)(a) of the Gift-tax Act and thus the actual value of the property relinquished by her children should be taken as the cost to the assessee instead of taking into consideration the price paid by her under the relinquishment deed. In other words, the four-fifth value of the property inherited by the children works out to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though the market value is higher and thus it was intended to be transferred for a lesser price out of love and affection to their mother and thus it falls within the description "gift/deemed gift". On the other hand, the learned Departmental representative relied upon the orders passed by the tax authorities. We have carefully considered the rival submissions and perused the record. At the outset, it may be noticed that section 47(iii) as well as section 49(1)((ii) of the Income-tax Act deal with the issue of " transfer of a capital asset under a gift or a will" and the Income-tax Act does not provide a specific definition about " deemed gift" . The case of learned counsel is that section 49 of the Income-tax Act uses the expression " g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 Income-tax Act, this very word ' gift' was used. Thus, there was no scope to import the artificial meaning given to that word in the Gift tax Act because the later Act came into force in 1958, a long time after. The same word is used in the 1961 Act which must convey the same meaning as in the 1922 Act. Although the Gift-tax Act came in 1958, the Income-tax Act, 1961 does not make any reference to it but uses the language of the 1922 Act. It rules out the possibility of an intendment to import the artificial meaning to the word ' gift' . The language is plain. The meaning we are giving does not do any vio lence to the object or purpose of the Income-tax Act. It would not, therefore, be proper to import an artificial definition of another ..... X X X X Extracts X X X X X X X X Extracts X X X X
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