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Issues:
1. Whether the difference between declared consideration and deemed value for capital gains can be charged to gift-tax. 2. Whether gift-tax can be imposed if capital gains tax has already been levied on the same amount. Analysis: The case involved a dispute regarding the imposition of gift-tax on the difference between declared consideration and deemed value for capital gains. The assessee sold a property for Rs. 1,00,000, but the Income-tax Officer computed capital gains at a higher value of Rs. 1,52,000. Subsequently, the Gift-tax Officer initiated assessment proceedings, considering the Rs. 52,000 difference as a deemed gift. The Appellate Assistant Commissioner relied on a precedent to rule that no gift-tax could be charged on the said difference. However, the High Court disagreed, emphasizing that gift-tax and capital gains tax are distinct and can be imposed separately. The court referred to the case law of Sardarni Ahilya Raghbir Singh Raja Sansi v. CIT and ITO v. K. P. Varghese to establish that the same amount can be subject to both capital gains tax and gift-tax without constituting double taxation. It highlighted the different purposes and implications of the transactions under the Income-tax Act and the Gift-tax Act, concluding that imposing both taxes is not contradictory. The court also cited cases like ITO v. Buragadda Satyanarayana and CGT v. B. Sathiar Singh to support the view that gift-tax can be levied even if income-tax has been imposed on the same transaction. The court rejected the argument that the same amount cannot be taxed twice over, emphasizing that the provisions of the Income-tax Act and the Gift-tax Act do not prohibit the assessment of gift-tax on a transaction already taxed under income tax. Consequently, the court answered the first question in the negative, in favor of the Revenue. As the first issue was decided against the assessee, the court deemed it unnecessary to address the second question raised in the appeal.
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