IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH.
G.T.A. No.4 of 2001
Date of decision: 17.12.2008
Commissioner of Gift-tax (Central), Ludhiana.
-----Appellant
Vs.
Sh. Brij Mohan Lal Munjal.
-----Respondent
CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL
HON'BLE MR JUSTICE L.N. MITTAL
Present:- Mr. Krishan Mehta, Sr. Standing Counsel
for the appellant.
Mr. Akshay Bhan, Advocate
for the respondent.
-----
ORDER:
This appeal has been preferred by the revenue under the
Gift-tax Act, 1958 (for short, “the Act”) read with Section 27A of the
Wealth Tax Act, 1957 against the order of Income Tax Appellate
Tribunal, Chandigarh Bench, Chandigarh passed in GTA
No.8/Chandi/99 on 22.3.2000 for the assessment year 1989-90,
proposing to raise following questions of law:-
“1. Whether, in the Facts and Circumstances of the Case,
the ITAT was right in law in holding that no Interest
u/s 16B was chargeable in this Case?
2. Whether, in the Facts and Circumstances of the Case,
the ITAT was right in law holding that the provisions of
Section 16B(3) were applicable to this Case?”
G.T.A. No.4 of 2001
2
We have dispose of connected G.T.A. No.2 of 2001
(Commissioner of Gift-tax (Central), Ludhiana v. Sh. Om Parkash
Munjal) today. Therein, it has been held that value of bonus shares
was liable to be taxed to gift tax even after gift of equity shares is
revoked. In the present case, the only question is whether the provision
of interest will be attracted. The Tribunal set aside the levy of interest
on the ground that tax itself was not levied. The said finding has since
been reversed by us in the order passed in the abovesaid connected
matter, as a consequence, the finding of the Tribunal and levy of
interest are also set aside.
The appeal is accordingly allowed. The order of the
Tribunal is set aside and that of the Assessing Officer is restored.
( ADARSH KUMAR GOEL )
JUDGE
December 17, 2008 ( L. N. MITTAL )
ashwani JUDGE