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REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 3917 OF 2010

Satya Nand Munjal  …..Appellant

         Versus

Commissioner of Gift Tax, (Central), Ludhiana    …..Respondent

WITH

CIVIL APPEAL NO. 3916 OF 2010

AND

CIVIL APPEAL NO. 3918 OF 2010

J U D G M E N T  

Madan B. Lokur, J.

1. Civil Appeal No. 3917/2010 (Assessee:  Mr. Satya Nand Munjal),  

Civil  Appeal  No.  3916/2010   (Assessee:   Mr.  Brij  Mohan  Lal  

Munjal)  and  Civil  Appeal  No.  3918/2010  (Assessee:  Om  Prakash  

Munjal) arise out of G.T.A. No. 1/2001, G.T.A. No. 4/2001 and  

G.T.A. No. 5/2001 respectively, all decided by the High Court of  

Punjab & Haryana on 17th December, 2008.  The relevant Assessment  

Year is 1989-90.

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2. The  common  substantial  questions  of  law  referred  for  

consideration by the High Court, at the instance of the Revenue,  

in all the appeals reads as follows :-

“1. Whether, in the facts and in the circumstances of the case,  the ITAT was right in law in holding that no interest under  section 16B was chargeable in this case?

2.Whether, in the facts and in the circumstances of the case,  the ITAT was right in law in holding that the provisions of  section 16B(3) were applicable to this case.”  

3. The High Court allowed the appeals on the basis of the common  

judgment and order rendered in G.T.A. No. 2/2001 and G.T.A. No.  

3/2001 holding, inter alia, that since gift tax was leviable on the  

revocable transfer of equity shares by the assessee to M/s Yogesh  

Chandra & Brothers Associates, interest was liable to be paid by  

the assessee on the gift tax levied.

4. Feeling aggrieved by the judgment and order of the High Court,  

the assessees have preferred these appeals.

5 We have today set aside the order of the High Court passed in  

G.T.A.  No.  3/2001  and  G.T.A.  No.  2/2001  and  have  remanded  the  

matters back to the High Court for de novo consideration.

6 In view thereof, the judgment and order in appeal in these  

cases is also set aside.  The matters are remanded to the High  

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Court  for  fresh  consideration  on  the  merits  of  the  case.   The  

appeals are allowed but there will be no order as to costs.   

      ….…….……………………..J.   (D.K. Jain)

                    ….…….……………………..J.   (Madan B. Lokur)

New Delhi; January  22, 2013  

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