Law:

Section:

Section 1 of the Gift-tax Act, 1958 - Validity of - Whether a tax on lands and buildings is distinctly different from a tax on gift of lands and buildings - Held, yes - Whether, therefore, tax on gift of lands and buildings cannot fall under entry 49 in List II of Seventh Schedule of Constitution and that Gift-tax Act was validly passed by Parliament by virtue of article 248 of Constitution, read with entry 97 in List I of Seventh Schedule - Held, yes FACTS In the instant writ petition, the vires of the Act was challenged so far as it includes in its ambit the imposition of tax on gifts of land and buildings. It was contended by the petitioner that in terms of entry 49 of List II of the Seventh Schedule of the Constitution all legislation related to tax on land and building, including a tax on the Gift of land and building, fell within the sphere of the State Legislature and the Central Parliament was incompetent to have made the Act applicable to gifts of land and building also. On writ: HELD In view of the clear language of article 248 read with entry No. 97 in List I of the Seventh Schedule of the Constitution, any subject in respect of which there is no independent entry in any of the three Lists can be legislated upon by the Central Parliament. It could not be accepted that neither Parliament nor the State legislatures were competent to pass a law taxing gifts and, the impugned legislation was fully protected by article 248 read with entry 97. There is a clear difference between a tax on lands and buildings and a tax on gifts of lands and buildings. What entry 49 in List II of the Seventh Schedule contemplates is a tax on ownership or enjoyment of lands and buildings and not on the transfer of the same. It is true that an entry must be so read as to include all ancillary and incidental matters but that does not mean that matters not strictly covered by the entry should also be included in its purview. Even though an entry in a List is to be read in its widest amplitude, including legislation in respect of ancillary matters, it cannot be so widely read as to include something which cannot be comprehended within it and, if that thing is not specifically…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492