1993 (10) TMI 119

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....-1-1981. The assessee filed the Gift-tax Return on 26-7-1983. The Assessing Officer completed the assessment on a total taxable gift of Rs. 1,28,574. The net tax payable thereon after deducting the tax already paid was determined at Rs. 2,264. For the default in the filing of the return, the Assessing Officer initiated penalty proceedings under section 17(1)(a) of the G.T. Act. Rejecting the explanation offered, the Assessing Officer levied penalty @ 2% of the assessed tax of Rs. 17,964 for a default of 24 months. 3. Aggrieved by the said order, the assessee took up the matter in appeal before the Dy. CGT(A) and it was claimed that the assessee should have been given rebate of advance-tax under section 18 of the Act and on that basis the a....

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....e same submissions as placed before the Dy. CGT(A). After hearing Sri S.K. Lahiri, ld senior departmental representative, we are of the view that there is considerable merit in the contentions of the assessee. 6. Dealing first with the reasonableness of the cause of the delay, we are of the view that no material has been placed before the Assessing Officer nor the Dy. CGT(A) in regard to the non-availability of the Return form during the period from January 1981 to 26-7-1983. The assessee in this case submitted one letter dated 9-1-1981 intimating the taxable gift and requesting the GTO to send necessary challan along with the Gift-tax Return form. This letter was received in the office of the GTO on 30-3-1981. It appears the assessee hims....

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....n the gift if the gift-tax on the gift is deposited to the Treasury within 15 days. The section 18 is intended essentially for the rebate of 1/9th of the amount of chargeable gift-tax so paid. The assessee is entitled to such rebate on the actual tax on the taxable gift if the same is paid within 15 days. If not, the assessee cannot get the rebate of 1/9th of the amount so paid. However, there is no prohibition for giving the credit of the actual amount of tax payable on the gift paid by the assessee. In our view, there can be no denial of credit for tax paid by the assessee. Therefore, section 18(i) is inserted more as a measure for working out the extent to which the rebate can be allowed under section 18(ii). Such amount of tax paid is t....

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....liable, in addition to the amount of gift-tax if any payable by him, a sum equal to two per cent of the assessed tax for every month during which the default continued. "Assessed tax" has been defined in the Explanation to mean gift-tax chargeable under the provisions of this Act as reduced by the amount, if any, for which credit is allowed under section 18. 9. From the order of the assessing officer dated 3-3-1986 it is seen that the taxable gift has been determined by him at Rs. 1,28,574. The chargeable gift-tax has been worked out by him at Rs. 17,964. The assessing officer did not allow the rebate of 1/9th of the amount so paid as contemplated under section 18(ii). He, however, gave full credit of the amount of advance-tax so paid at R....