| Case ID |
262155d5-1955-4caf-b980-01527ce2a9c1 |
| Body |
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| Case Number |
Tax Case No. 69 of 1971 |
| Decision Date |
Aug 02, 1976 |
| Hearing Date |
|
| Decision |
The High Court declined to answer the question referred by the Tribunal regarding the valuation of shares transferred by the late Smt. Moonghibai Goenka to trusts for her grandchildren. It upheld the objection raised by the assessee that the question was not raised before the Tribunal, thus rendering the reference incompetent. The court emphasized that the Tribunal could not determine a value less than what was asserted by the assessee, as the issue of valuation was not properly before it. Additionally, the court noted the importance of adherence to procedural correctness in such references, aligning with previous case law that dictates that questions not raised before the Tribunal do not arise from its order. |
| Summary |
This case revolves around the valuation of shares transferred as gifts under the Indian Gift Tax Act, 1958. The late Smt. Moonghibai Goenka transferred shares to trusts established for her grandchildren, claiming a specific value for tax purposes. The Gift Tax Officer challenged this valuation, and the matter escalated through various appeals, ultimately reaching the High Court. The Tribunal's decision to accept a lower value determined by arbitrators was contested by the department, leading to a significant legal question regarding the Tribunal's jurisdiction. The High Court found that the Tribunal exceeded its authority by accepting a valuation not claimed by the assessee, thereby highlighting critical aspects of tax law and judicial procedure. This case underscores the complexities of tax assessments related to gifts, the importance of accurate valuation, and the procedural requirements for appeals in tax law, making it a notable reference in the field of tax litigation. |
| Court |
Madras High Court
|
| Entities Involved |
Not available
|
| Judges |
ISMAIL J.,
SETHURAMAN J.
|
| Lawyers |
A. N. Rangaswami,
Mrs. Nalini Chidambaram,
T. S. Viswanatha Rao,
A. G. Gajapathy
|
| Petitioners |
Late Smt. Moonghibai Goenka (by L. R.)
|
| Respondents |
COMMISSIQNER OF GIFT TAX (CENTRAL), MADRAS
|
| Citations |
1979 SLD 27,
(1979) 40 TAX 51
|
| Other Citations |
CIT v SCINDIA STEAM NAVIGATION Co. LTD. [1961] 42 ITR 589 (SC),
CGT v. Dr. V. Madhavan Valiathan [1968] 68 ITR 729 (Ker) [FB],
Keshav Mills Co. Ltd. V. CIT [1965] 56 ITR 365 (SC)
|
| Laws Involved |
Indian Gift Tax Act, 1958
|
| Sections |
26,
26(1)
|