The Commissioner Of Gift Tax vs K.P. Varoo Children Trust on 2 July, 2008

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITR.No. 59 of 2000()



1. THE COMMISSIONER OF GIFT TAX, CALICUT
                      ...  Petitioner

                        Vs

1. K.P. VAROO CHILDREN TRUST
                       ...       Respondent

                For Petitioner  :SRI.P.K.R.MENON,SR.COUNSEL,GOI(TAXES)

                For Respondent  :SRI.JOSE JOSEPH

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice V.K.MOHANAN

 Dated :02/07/2008

 O R D E R
                  C .N. RAMACHANDRAN NAIR &
                          V.K. MOHANAN, JJ.
                  --------------------------------------------
                          I.T.R. No. 59 OF 2000
                  --------------------------------------------
                  Dated this the 2nd day of July, 2008

                                JUDGMENT

Ramachandran Nair,J.

Heard standing counsel appearing for the applicant and counsel

appearing for the respondent-assessee. The issue referred to this Court

is whether there is deemed gift under Section 4(1) (c) of the Gift Tax

Act in respect of shares relinquished by one of the partners in favour of

others of the dissolved firm. It is seen that the Tribunal has decided the

matter based on the decision of this Court which was later confirmed

by the Supreme Court in the decision in COMMR. OF GIFT TAX V.

T.N. LOUIZ, 245 I.T.R. 831. Counsel for the assessee brought to our

notice another decision of the Supreme Court which is directly on the

point and in favour of the assessee. It is reported in JAGATRAM

AHUJA V. COMMISSIONER OF GIFT TAX, 246 I.T.R. 609. Even

though counsel for the revenue referred to the decision of the Supreme

Court in SUNIL SIDDHARTH BHAI V. CIT, 156 I.T.R. 509, 519, we

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do not think any interference with the Tribunal’s order is warranted

because their decision is consistent with law declared by the Supreme

Court in the above two decisions. Consequently we dispose of the

reference application by answering the question in favour of the

assessee and against the revenue.

A copy of this judgment under the seal of the High Court and

signature of the Registrar General shall be forwarded to the Income tax

Appellate Tribunal, Cochin Bench, Cochin.

(C.N.RAMACHANDRAN NAIR)
Judge.

(V. K. MOHANAN)
Judge.

kk

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