1992 (2) TMI 62

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....ircumstances of the case, exercise of revisional power by the Commissioner directing further enquiry by the Gift-tax Officer has been unreasonably reversed by the Tribunal ? " The background of the cases as culled out from the statement of facts prepared by the Tribunal is as follows : Shri Madhusudan Mishra, Shri Jayanarayan Singh Deo, Shri Bansidhar Kalasia and Shri Satiya Budek (each of them hereinafter referred to as the " donor ") made gifts of various amounts to Shri Chetram Agarwala. All of them filed returns of gift under section 13 of the Act for the assessment year 1981-82, while Jayanarayan Singh Deo filed return for the assessment year 1982-83 also. Assessment in each case was taken up by the Gift-tax Officer, Balangir, wh....

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.... order, it was not open to the Commissioner to refer to other records. The Revenue being not satisfied with the orders of the Tribunal moved for reference of three questions to this court. On the refusal of the Tribunal to refer any question, this court was moved under section 26(3) of the Act and a direction to state a case on the question referred to above was given. The stand of Mr. Ray, learned standing counsel for the Revenue, is that the Tribunal's approach was erroneous inasmuch as the Gift-tax Officer not having considered the capacity of the donor to make the gift and there being no material to show that, in fact, any gift had been made, the order as passed accepting the gift was erroneous and prejudicial to the interests of the....

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....quiry or cause such enquiry to be made as may be deemed necessary. While making the examination and causing enquiry, it is not impermissible to refer to the records of any other proceeding. Therefore, the Tribunal was not justified in its conclusion that it was not open to the Commissioner to refer to other records. In the course of making enquiry, it would certainly be open to the Commissioner to refer to other materials and records as are relevant for the purpose of finding out whether the order passed by the Gift-tax Officer was erroneous inasmuch as it was prejudicial to the interests of the Revenue. Now, coming to the first limb of argument of Mr. Ray, the Tribunal has recorded a finding that the Gift-tax Officer caused necessary en....