1999 (2) TMI 30

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....raise a common question about gifts made by the karta of a Hindu undivided family in favour of the coparceners/near relations. The references pertain to the assessment years 1970-71, 1975-76 and 1976-77. The question of law framed in these income-tax references are as under: Income-tax Reference No.12 of 1981: "Whether, on the facts and in the circumstances of the case, the Tribunal was righ....

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....e, the Tribunal is correct in law in holding that the interest income received by Ravinder Kumar and Virender Kumar was not includible in the assessment of the assessee, a Hindu undivided family?" At the outset learned counsel for the assessee has submitted that the gift-tax authorities have accepted the returns filed by the assessee for the assessment years under reference meaning thereby that....

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.... the three minor daughters were accepted as valid gifts by the Gift-tax Officer and the order of the Gift-tax Officer was upheld in appeal by the Appellate Assistant Commissioner and the said order has become final. Since the Revenue has already treated these gifts as valid gifts for the purpose of gift-tax, it is not open to the Revenue to assail the said gifts in connection with the income-tax a....

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....cannot be held to be valid. If the gift is not accepted as valid the income derived from such a gift has to be added to the income of the assessee. Relying on CIT v. Dwarka Das and Sons [1995] 212 ITR 579, which is a decision of the Rajasthan High Court, learned counsel for the Revenue submits that the conclusion arrived at by the gift-tax authorities in this behalf cannot be said to be conclusive....