2018 (3) TMI 478

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....ns of law arise for consideration : (i) Whether the period of 12 months or 6 months, as the case may be, as prescribed in proviso to Section 15(2) of the Gift Tax Act, 1958, is applicable to re-assessment proceedings initiated under Section 16 of the said Act? (ii) If the answer to the above question is in the affirmative, whether the assessment order dated 29.03.2001 would be bad in law as bein....

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....th the provisions of law. The order of the ITAT was served upon revenue on 19.11.1998. The GTO proceeded to issue notice much later on 16.3.2000 under Section 15(2). By this time, an amendment had been brought about to the Gift Tax Act by way of proviso to Section 15(2), which imposed the time limit of six months, from the end of the financial year in which the gift tax return is filed or six mont....

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....the assessment officer can proceed with the proceedings in accordance with the provisions of law, if it is now possible to do so, from the stage at which the illegality has occurred i.e. from the stage of pendency of the valid return"   4. It is contended that the observations of the ITAT were not meant to clothe the GTO with power which he did not possess under law. Elaborating its contenti....

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....ice by the Gift Tax officials in March, 1987, which resulted in the filing of a return on 16.4.1987. The first round of litigation resulted in finality of one aspect i.e. though, notice under Section 15(2) was issued in terms of the record, it was only served upon the assessee. Such being the case, when the ITAT rendered its findings, limitation prescribed by the amendment had come into force. Eve....