TMI Blog1974 (7) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... a, filed a gift-tax return for the assessment year 1971-72, showing that he gifted a sum of Rs. 20,000 to one Sanjai Kumar, minor son of Sri Prithivi Nath, on 1st January, 1970. This gift was said to have been effected by debiting and crediting the respective personal accounts of the donor and the donee, maintained in the books of the firm. In due course the interest accruing on the aforesaid amount was also credited to the account of Sanjai Kumar. Income-tax payable on the interest accruing on the aforesaid amount gifted by the petitioner was, under section 199(4) of the Income-tax Act, deducted at source and paid to the Government on behalf of the donee. Subsequently, on 31st May, 1972, the donee withdrew the entire amount from the said f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of gift-tax determined as payable by him nor did the petitioner deny his liability to be assessed under the Act, no appeal under section 22(1) of the Gift-tax Act, 1958, lay against the order of the Gift-tax Officer dated October 22, 1971. As the petitioner had no right of appeal before the Appellate Assistant Commissioner there could also be no question of a second appeal to the Tribunal. In the result the second appeal filed by the petitioner was dismissed by the Tribunal on September 17, 1973. The petitioner filed the present petition under article 226 of the Constitution before this court on 28th March, 1974, and prayed that the three orders passed by the Gift-tax Officer, Appellate Assistant Commissioner and the Income-tax App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uently, it cannot be said that the petitioner was a person who was either objecting to the value of the taxable gift determined under the Act, or to the amount of gift-tax determined as payable by him, or that he denied his liability to be assessed under the Act. As a matter of fact, the averments made in the present writ petition go to indicate that even today the petitioner insists that the provisions of the Gift-tax Act were attracted and that he was liable to be assessed to tax in respect of the gift made by him on 1st January, 1970. He also does not dispute the correctness of the value of the taxable gift or the amount of gift-tax determined to be payable by him. It is, therefore, clear that the petitioner was not a person who could ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt, other than the amount contributed by him as capital, that stands to his credit in his personal account maintained by the firm. Such amount can be dealt with and disposed of by the partner in any manner that he likes. Learned counsel for the revenue has not been able to point out any law which prohibits a partner from claiming or exercising exclusive right in respect of an amount standing to his credit in his personal account maintained by the firm. There is nothing in the order of the Gift-tax Officer or in the affidavits filed before us to show that the amount standing to the credit of the petitioner in his personal account maintained with the firm represented the capital contributed by him for the business of the firm. In the circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the donor who makes the transfer entries in his books to reverse the same without the donee coming to know of the same and as such it may not be possible to say that delivery of the gifted amount has taken place. However, in a case where such entries are made under the directions of the donor in the books of a third party it would not be possible for the donor to get those entries reversed by his unilateral action. In the instant case, the transfer entries were made in the books of the firm as distinguished from the personal books of the petitioner. Merely because the petitioner was a partner in the firm, in whose books these entries were made, it cannot be said that the books of the firm were his personal books which could be dealt w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
