9911796707
TMI Blog1985 (10) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... xempt under section 5(1)(ii) of the Gift-tax Act, 1958 ('the Act'). According to the GTO the assessee who was a resident of Ahmedabad had transferred a sum of Rs. 101 from his account with Bank of Maharashtra, Relief Road, Ahmedabad to the branch of the same bank at Srinagar on 13-12-1982 to open a savings bank account there. Similarly, the donee A.P. Sheth Family Trust also transferred Rs. 101 to the same branch for the same purpose. The GTO further observed that the donor thereafter sent Rs. 1,05,000 by demand draft to be deposited in the savings account No. 452 opened in the Bank of Maharashtra, Srinagar, on 24-3-1982. On the same day an amount of Rs. 1 lakh was withdrawn by cheque and handed over to the donee which was deposited in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... managing trustee of A.P. Sheth Family Trust travelled right from Ahmedabad to Srinagar for making the gift there. The appellant made gift of Rs. 1 lakh by cheque drawn on Bank of Maharashtra, Srinagar branch and handed over the same there. The donee accepted the amount and deposited the same in the bank account opened there for such purpose. For making the gift, the money has travelled from Ahmedabad to Srinagar. Moreover, both the donor and donee are resident of Paldi, Ahmedabad and they had gone to Srinagar only with the aim of making the gift irrationally conceived as outside the territory of Gift-tax Act and thereby evading the payment of gift-tax. It appears that the money must have been brought back to Ahmedabad after the transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught to be made out by the revenue but only a question of taking advantage of a tax provision and within the four corners of law. It was accordingly contended that as the gift in question fulfilled all the conditions for exemption as laid down by section 5(1)(ii), there was no reason why the same should not be granted. He also drew our attention during the course of the argument to certain provisions of the Income-tax Act, 1961 such as, section 80HH for the contention that certain facilities were to be provided to persons who were located in certain areas. 5. The learned departmental representative, on the other hand, relied strongly on the orders of the GTO as well as the AAC. He contended that both the donor and the donee were related to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cept the State of Jammu and Kashmir." 7. Section 2(xxiiia) extends the Act to the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry. It is significant to note that Jammu and Kashmir does not appear in this clause. We would now refer to section 5(1), which is the relevant section for purposes of deciding the matter. This reads as under : "(1) Gift-tax shall not be charged under this Act in respect of gifts made by any person--- (i) of immovable property situate outside the territories to which this Act extends; (ii) of movable property situate outside said territories unless the person--- (a) being an individual, is a citizen of India and is ordinarily resident in the said territories, or (b) not being an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inagar Branch, which reads as under : "This is to be certified that Shri Deepak Anubhai Sheth, r/o 14, Ashwin Society Fatehpur Paldi, Ahmedabad (Gujarat) has transferred an amount of Rs. 1,00,000 (Rs. 1 lakh only) from his savings account No. 452 with us to the savings account No. 453 of Shri A.P. Sheth (Family Trust) 14-Ashwin Society Fatehpur Paldi, Ahmedabad (Gujarat) with us vide cheque No. 203302 dated 24th March, 1982, in favour of the said trust for a like amount. Shri D.A. Sheth has handed over the said cheque personally at Srinagar to the managing trustee of Shri A.P. Sheth (Family Trust) Mr. V.A. Sheth. This certificate has been issued at the request of the managing trustee." 7.2 This certificate belies the contentions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up in backward areas. 7.3 We would also like to point out that wherever the Legislature intended to provide a particular benefit or exemption to a particular category of persons it indicated so. In this connection we refer to section 10(26A) of the Income-tax Act, which reads as under : "(26A) any income accruing or arising to any person from any source in the district of Ladakh or outside India in any previous year relevant to any assessment year commencing before the 1st day of April, 1989, where such person is resident in the said district in that previous year :" Similar provisions have been laid down in section 10(26) for members of Scheduled Tribes living in specified areas. 7.4 A reading of the above section clearly shows that r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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