1974 (10) TMI 21

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... essment years 1964-65 and 1965-66. The relevant valuation dates were 31st March, 1964, and 31st March, 1965, respectively. The assessee had made a gift of Rs. 1,00,011 to her minor daughter, Kumari Manjushree Birla, on the 7th of October, 1959. Applying the provisions of section 4(1)(a)(iv) of the Wealth-tax Act, 1957, the Wealth-tax Officer had included the said amount in the net wealth of the as .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... reasonable construction of the proviso was that so long as the gift was chargeable to or exempt from gift-tax to that extent section 4(1)(a) ceased to have any operation for attributing the statutory fiction embodied in it. As at the relevant time the gift was chargeable to tax the exemption was to operate from the assessment year commencing after 31st March, 1964, i.e., 1964-65. Therefore, to th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d. Counsel for the assessee contended that the expression " is chargeable " was descriptive of being charged and not indicative of the period when the charge was imposed or levied. In this connection it may be relevant to mention that since the passing of the Finance Act 2 of 1971, with effect from 1st of April, 1972, the sub-clause is as under : " By a person or association of persons to whom .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s that the expression " for any assessment year commencing after 31st March, 1964 " occurring in the proviso indicates that the transfer of asset must be chargeable to gift-tax under the provisions of the Gift-tax Act, 1958, for any assessment commencing after 31st of March, 1964, or where the transfer is not chargeable under section 5 of that Act, then for any assessment year commencing after 31s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... chargeable for any assessment year commencing after 31st of March, 1964, or where the transfer was not chargeable under section 5 of the Act for any assessment year commencing after 31st of March, 1964. This construction is in consonance with the later amendment made, though that is not a relevant factor. In the aforesaid view of the matter we are of the opinion that the Tribunal was not correct .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X