High Court Of Madhya Pradesh
Commissioner Of Wealth Tax vs. G.B.J. Seth & C.B.J. Seth
Sections WT 27, WT 34B, WT 27(3)
G.G. Sohani, Actg. C.J. & R.K. Verma, J.
MCC Nos. 124 & 134 of 1987
11th August, 1989
Samvastar, for the Revenue : J. W. Mahajan, for the Assessee
G.G.SOHANI, ACTG., C. J.:
This is an application under s. 27(3) of the WT Act, 1957 (hereinafter referred to as “the Act”). The material facts giving rise to this application, briefly, are as follows Shri R. C. Jall died on 17th Dec., 1973, and the respondents are executors of his will. While framing the assessment under the Act for the assessment year in questions the WTO included the value of certain shares, gifted by the deceased, in the wealth of the assessee by invoking the provisions of s. 34B of the Act. On appeal, the CIT (A) deleted the aforesaid addition holding that the WTO was not justified in including the value of the gifted shares by invoking the provisions of s. 34B of the Act. The appeal preferred by the Revenue from the order passed by the CIT (A) was dismissed. Aggrieved by the order passed by the Tribunal, the Revenue sought reference but as the application submitted by the Revenue in that behalf was rejected, the Revenue has filed this application.
Having heard learned counsel for the parties, we have come to the conclusion that the following question of law does arise out of the order passed by the Tribunal “Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in affirming the order passed by the CIT (A) holding that the WTO was not justified in including the value of gifted assets by invoking the provisions of s. 34B of the WT Act ?”
The application is, therefore, allowed. The Tribunal is directed to state the case and to refer the aforesaid question of law to this Court for its opinion. In the circumstances of the case, parties shall bear their own costs of this application.
[Citation :181 ITR 377]