Supreme Court of India · 1970-04-02
SECOND GIFT TAX OFFICER, MANGALORE, ETC. vs D. H. NAZARETH ETC.
- Citation / case number
- SC 1967/225
- Court
- Supreme Court of India
- Petitioner
- SECOND GIFT TAX OFFICER, MANGALORE, ETC.
- Respondent
- D. H. NAZARETH ETC.
- Author
- HIDAYATULLAH, M. (),SHAHC.,GROVER, A.N.,RAY, A.N.,DUA, I.D.
- Bench
- HIDAYATULLAH, M. (CJ),SHAH, J.C.,GROVER, A.N.,RAY, A.N.,DUA, I.D.
Judgment text excerpt
The Supreme Court held that the Gift Tax Act, 1958, was validly enacted by Parliament under Article 248 and Entry 97 of the Union List, despite the High Court's ruling that it lacked legislative competence due to Entries 18 and 49 of the State List. The Court clarified that the gift tax is not a direct tax on lands and buildings but rather a tax on the value of gifts, which may include such properties. Consequently, the Court upheld the validity of the Gift Tax Act, affirming Parliament's power to legislate on matters not enumerated in the State or Concurrent Lists.