Law:

Section:

Section 26, read with section 4 of the Gift-Tax Act, 1958 - Reference - Question of law - Assessment year 1978-79 - Assessee transferred at cost his shares in a plot of land to his father, mother and brother and pleaded before GTO that shares in question were purchased by him on behalf of his father, mother and brother in his name, since they did not have sufficient funds for purchase and when amount was paid to him shares were transferred to them in September 1977 and so there was no element of girt in transaction in question - GTO as well as Commissioner (Appeals) rejected assessee's plea, but Tribunal accepting assessee's plea held that assessee was only a benamidar between date of purchase and date of transfer of shares and was only an apparent owner of shares, but real owners of shares were assessee's father, mother and brother and when shares were transferred from apparent owner to real owner there was no question of transfer and question of applying section 4(1)(a) or 4(1)(b) or for that matter even section 4(1) did not arise - Tribunal also rejected revenue's contention that assessee admitted in his wealth-tax return for 1977-78 that shares in question were to be treated as assessee's own shares, holding that it was so shown by assessee due to a misconception of law - Whether any question of law did arise from order of Tribunal - Held, yes FACTS During the relevant assessment year 1978-79, the assessee had transferred at cost his shares in a plot of land to his relatives - father, mother and brother, and pleaded before GTO that the shares in question were purchased by him on behalf of his relatives in his name, since they did not have sufficient funds for the purchase and when the amount was paid to him the shares were transferred to them in the relevant assessment year and so there was no element of gift in the transaction in question. The GTO rejected the plea of the assessee and held that the transfer was otherwise than for adequate consideration and assessed gift-tax determining the value of the gift at Rs. 2,77,200. On appeal, the Commissioner (Appeals) confirmed the order of the GTO. On second appeal, the Tribunal accepting the plea of the…

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