TMI Blog1988 (9) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... sts of landed property donated by the assessee to Sarabhai Foundation, Ahmedabad (hereinafter called the Foundation), which is claimed to be a Charitable Trust. The gifted property was registered with the Sub-Registrar of Properties on 27-3-1980 as per the copy of the Registered Deed which has been produced by the assessee and kept on record. The description of the property claimed to have been gifted is given as under : (1) Land and Building at Sub-plot Nos. 1 and 2 of Final Plot No. 195 T.P.S. 14 Shahibag (East Wing) - gross value Rs. 6,63,270. (2) Land and Building at Sub-plot No. 2 of final plot No. 195 of T.P.S. 14 (West Wing) - gross value Rs. 1,97,276. The obligation attached to each is Rs. 6,61,500 and Rs. 1,96,000 respectivel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on was not a "gift" but a "sale". He further opined that since the consideration was inadequate the same came within the ambit of section 4(1)(a) for being treated as a "deemed gift". The GTO was also of the view that section 5(1)(v) contemplated gifts actually made and not deemed gifts. He further went on to observe that even otherwise the claim for exemption u/s. 5(1)(v) was not sustainable since the donee, namely, Sarabhai Foundation did not enjoy the benefit of section 80G during the period under consideration. 4. Taking up the first issue, the learned D.R. raised an objection straightway on the ground that since the CGT (Appeals) had not given any decision on this aspect of the matter the same may be restored back to his file for doi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s whether the gift is to any institution or fund established for a charitable purposes. This, of course, would come up for consideration in the second issue in the present appeal. We would accordingly hold that a "deemed gift" would qualify for exemption under section 5(1)(v) subject to fulfilment of the other terms of the said sub-section. 5. As regards the second issue in the appeal the learned D.R. strongly supported the order of the GTO. He could however not dispute any of the facts found by the CGT (Appeals) in his order. These are as follows : "From the above sequence of facts it is seen that, for the purpose of the applicability of section 5(1)(v) of the GT Act, the Sarabhai Foundation had for the asst. year 1980-81 enjoyed the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abhai Foundation for 1981-82 hold good only for that year and for later periods but cannot be taken to apply with retrospective effect. Therefore, it is established that for the purpose of asst. year 1980-81, the Sarabhai Foundation had enjoyed the exemption in terms of section 11 of the IT Act. Moreover, for the purpose of the formal exemption under section 80G the application filed by the Foundation to the concerned Commissioner is still pending. The request has not been rejected. On the contrary the Commissioner of Income-tax Gujarat-I in his order No. HQ. I/P-33(18)/78-79 dt. 19-11-1981 had given the exemption in terms of section 80G(5) to Sarabhai Foundation for the period from 1-4-1981 to 31-3-1982. " 9. In addition to the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disposed of till date although the application pertaining to the period 1-4-1976 to 31-3-1981 was made on 25-6-1978 with a subsequent reminder having been sent on 14-6-1982. Inaction on the part of the Revenue in issuing a certificate to the Sarabhai Foundation under section 80G cannot deprive the donor in this case, namely, the assessee to the rightful exemption to which it is entitled u/s. 5(1)(v). In the final analysis, we confirm the findings of the CGT (Appeals) in respect of the second issue before us. 11. As regards GTA No. 103/Ahd/1986 the same is consequential to the first appeal since it has arisen out of the rectification order passed by the GTO u/s. 34 of the GT Act. As the levy of gift-tax itself has been set aside, the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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