1999 (1) TMI 14

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....e, the effect of the provision contained in section 5(3) vis-a-vis section 5(1) (viii) of the Gift-tax Act, 1958, has to be considered. The assessee is an individual and his wife had gifted him an amount of Rs. 25,000 on February 3, 1972. On October 30, 1975, the assessee had in turn made a gift to his wife of the same quantum of Rs. 25,000. The asses-see's wife was not subjected to gift-tax....

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..... (3) Notwithstanding anything contained in sub-section (1) or subsection (2), where either spouse makes any gifts out of any such gifts received by that spouse as fall within clause (viii) of sub-section (1), the gifts, so made shall be deemed to be taxable gifts made by that spouse and nothing contained in sub-section (1) or sub-section (2) shall apply in relation to any such gifts." A questi....

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....him in the year 1975 was from his personal account in the firm of Sulemankhan and Mahaboobkhan Jewellers. But, in the account books of Sulemankhan and Mahaboob Khan Jewellers, the entry on October 30, 1975 reads : "Debit : October 30, 1975-Your wife, Jameela Begum, on February 3, 1972, gave Rs. 25,000 as gift to you. Cash taken for returning the gift to her." Regardless of the change in the ....