The main legal point established in the judgment is that a statutory definition in one context cannot be imported into another Act, and the court must ensure that it does not usurp the legislative function.

JUDGMENT

Manmohan, J. (Oral)--Present writ petition has been filed seeking a direction that a `relative' under Section 2(g) of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 [`The Senior Citizens Act'] be treated at par with `relative' under Section 2(41) and Section 56 of the Income Tax Act, 1961 [`the IT Act'] for grant of exemption from income tax on gifts received. Petitioner also challenges the provisos and explanation in Section 56 of the IT Act granting exemption to the relatives while excluding relatives as defined under Section 2(g) of the Senior Citizens Act.

SUBMISSIONS ON BEHALF OF THE PETITIONER

2. Learned counsel for the petitioner states that Section 2(g) of the Senior Citizens Act defines the term `relative' as `any legal heir of the childless senior citizen who is not a minor and is in possession of or would inherit his property after his death'. Consequently, he submits that Section 2(g) of the Senior Citizens Act considers non-blood related persons to be relatives equivalent to children in case of childless senior citizens. He points out that Section 2(41) of the IT Act defines `relative' as `the husband, wife, brother or sister or any lineal ascendant or descendant of that individual' and thus does not include the individuals who are defined as `relatives' in the Senior Citizens Act. He submits that Section 56 of the IT Act which provides for exemption of tax on gifts received from relatives, in explanation to Provisos of Sections 56(2)(vii)(e) and 56(2)(x)(b) of the IT Act, does not include those persons in the definition of relative as provided under Section 2(g) of the Senior Citizens Act thereby creating an anomaly.

3. Learned counsel for the petitioner states that the petitioner, who is a person with 100% disability, gifted 10% of 9A/50, WEA, Karol Bagh, New Delhi vide gift deed dated 1st May, 2012 and her share of basement at 20, Todarmal Road, New Delhi valued at about Rs.63,32,040/- vide a registered gift deed dated 15th June, 2021 to her nephew Naresh i.e. her `relative' in accordance with Section 2(g) of the Senior Citizens Act. He states that the petitioner's last registered will dated 17th May, 2015, registered on 19th May, 2015 is also in favour of her `relative' Naresh. He states that in case the gift executed by the Petitioner in favour of Naresh is not exempt, neither the Petitioner nor Naresh has any money to pay the Income Tax on the Gift.

4. Learned counsel for the petitioner states that the Senior Citizens Act is a welfare legislation and has overriding effect over other Acts by virtue of Sections 3 & 4 of the Senior Citizens Act. He further submits that Sections 2(41) and 56 of the IT Act negate the rights and benefits for welfare of childless Senior Citizens, thus making two classes of Senior Citizens, one who are parents and their children get benefits; and the second category of Senior Citizens who are childless, whose relatives under Section 2(g) of the Senior Citizens Act are deprived of benefits of tax exemption on Gifts.

5. Consequently, he prays that gifts given to `relatives' as defined under Section 2(g) of the Senior Citizens Act, 2007 be considered to be exempt from tax under Section 56 of the IT Act.

6. Learned counsel for the petitioner further states that since a coordinate Division Bench of this Court has issued notice in a writ petition being Ms. X vs. The Principal Secretary Health and Family Welfare Department Govt. Of NCT of Delhi, W.P.(C) 10602/2022 challenging Rule 3B of the Medical Termination of Pregnancy Rules, 2003 as ultra vires the Medical Termination of Pregnancy Act, 1971, this Court must issue notice in the present matter.

7. In the alternative, he prays that the gift deed may be cancelled and declared void ab-initio, so that it may not be taxed by the Income Tax Department (now faceless assessment and appeal) to save the said liability which may arise, against relative under Section 2(g) as the Donee/relative at threshold of life