2001 (2) TMI 1030 - HC - Income Tax

High Court declines to answer Tribunal's query on assessment validity under Gift-tax Act for 1975-76

The High Court of Delhi declined to answer a question referred by the Tribunal regarding the validity of an assessment made under the Gift-tax Act for the ... Validity of assessment completed under section 15(5) read with section 16(1)(a) of the Gift-tax Act - Service of notice under section 16(1) of the Gift-tax Act - Non-issuance of notice under section 13(2) and its relevance to limitation - Question of fact versus question of lawService of notice under section 16(1) of the Gift-tax Act - Question of fact versus question of law - Tribunal's finding that the notice under section 16(1) was duly served and the consequent validity of the assessment was a finding of fact and not a question of law. - HELD THAT: - The Tribunal, after considering the record, reached a definite factual conclusion that the statutory notice under section 16(1) had been validly issued and served on the assessee; the assessee in fact responded and attended proceedings. The High Court noted the absence of the assessee at hearing and accepted the revenue's submission that the service issue was one of fact. Because the Tribunal's conclusion on service is essentially factual, it does not give rise to a question of law for the Court to answer. Consequently the reference under section 26(1) was not entertained on the merits of service and assessment validity.Reference returned unanswered; Tribunal's finding of valid service treated as a factual finding not warranting judicial answer.Final Conclusion: The Court declined to answer the reference, returning it unanswered on the ground that the Tribunal's finding that the notice was duly served is a factual finding and not a question of law; the assessment under section 15(5)/16(1)(a) stands insofar as it was upheld by the Tribunal on that factual basis. The High Court of Delhi declined to answer a question referred by the Tribunal regarding the validity of an assessment made under the Gift-tax Act for the assessment year 1975-76. The Tribunal found that notice had been properly served, and the High Court considered this finding as a question of fact, returning the reference unanswered.