1996 (5) TMI 17

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....l dispose of two income-tax cases Nos. 58 and 59 of 1994, in which common questions of law and fact arise. For the sake of convenience, the facts are being taken from I. T. C. No. 58 of 1994. The assessee is an individual. He through a gift deed gifted 6,000 equity shares of the face value of Rs. 25 each of Hero Cycles to Yogesh Chander and Brothers Associates. 4,000 shares by way of bonus came....

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....Rs. 25,000 received by the donee had to be taxed in the hands of the donor-assessee herein. Feeling aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) who upheld the order and affirmed the addition made in the income of the assessee. When the matter came up before the Tribunal in second appeal, it referred to its earlier de....

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....nd Brothers Associates to whom the assessee had earlier gifted equity shares and the said gift was held to be wholly void ? " We have heard counsel for the parties and perused the orders of the Appellate Tribunal. The question whether the sum of Rs. 25,000 should be assessed in the hands of the assessee depends on the answer to the question whether the gift made by the assessee was valid or not....