2024 (11) TMI 572

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....rred by the Assessee against the order dated 20.08.2009 (Annexure P-6) passed by the Income Tax Appellate Tribunal (herein after referred to as "ITAT"), whereby the ITAT decided the question as framed by the Hon'ble Supreme Court against the appellant-Assessee. 2. After first round of litigation, when it reached to the Supreme Court and yet order has been passed in favour of the appellant-Assessee, the Supreme Court directed as under:- "Exemption was claimed, as stated above, under Section 5 (1) (xvi) in respect of the aforestated two distinct and separate items. On going through the pleadings, we find that the findings have been recorded at the cost of clarity. There is utter confusion regarding the nature of the gift, the effe....

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....nd find that the cash gifts were claimed to have been from the bank account No.956 in the State Bank of India, Patiala wherein deposits were made from the receipts of the Privy Purse against various cheques were issued in favour of the donee trusts. As per the detail of the gifts noted by the Commissioner of Gift-tax (A) and reproduced by us in para 4.2 of our order, it is note-worthy that the gifts have been advanced by way of cheques and also by way of cash. The source of cash is stated to be out of the cash shown in the wealth-tax returns whereas the source of cheques is stated to be the amounts of Privy Purse deposited in the relevant bank account. Both the material, namely the relevant wealthy-tax returns or the bank account in questio....

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....that the cash gifts are out of the Privy Purse amounts. 18.0 We have given our anxious thoughts to this issue, keeping in mind the directions of the Hon'ble Supreme Court. Whether or not the cash gifts have come out of the Privy Purse is crucial to decide the applicability of section 5 (1) (xvi) of the Act and also the alternative claim of the assessee for exemption from the levy of gift-tax. Ostensibly, in order to test both the aforesaid claims of the assessee, it is a primary condition that the source of cash gift ought to be the Privy Purse and this aspect cannot be established on the basis of material and evidence on record. Therefore, the claim for exemption under section 5 (1) (xvi) has to be fail, having regard to non-f....

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....in not treating the same to be from the Privy Purse. 6. We have considered the submissions of the learned counsel for both the parties and carefully gone through the orders passed as noticed above. 7. The Supreme Court had itself given a finding that the question whether the gift amount of Rs. 10,00,000/- was made out of the Privy Purse, was a finding of fact required to be given by the ITAT. Since the ITAT was already seized of the entire record and the Commissioner of Gift Tax has, in its findings in Para 8, noticed various cheques and cash being made from the Privy Purse amount on various dates, the ITAT could not have further asked the appellant-Assessee to produce other than what was already available before Commissioner of Gift ....