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Issues:
1. Applicability of gift-tax to the appellant's Trust 2. Jurisdiction of the GTO in making the gift-tax assessment 3. Reduction in the value of unquoted shares of M/s Oswal Woollen Mills Ltd. Analysis: 1. The main issue in this case revolved around the applicability of gift-tax to the appellant's Trust. The assessee contended that the provisions of the GT Act were not applicable to the Trust, citing s. 45(e) of the GT Act. The Revenue argued that s. 45(e) was applicable to outright gifts and not deemed gifts. The Tribunal, in agreement with an earlier order, held that there was no distinction between outright gifts and deemed gifts as per the definition of "gift" in s. 2(xii) of the GT Act. Therefore, the provisions of s. 45(e) were deemed applicable to the deemed gifts made by the assessee, resulting in the annulment of the lower authorities' orders. 2. The second issue pertained to the jurisdiction of the GTO in making the gift-tax assessment. The GTO assessed a deemed gift based on the valuation of shares sold by the assessee. The assessee argued that being a public charitable trust, the GT Act provisions should not apply. However, the Tribunal ruled that the provisions of the GT Act were indeed applicable to the deemed gifts made by the assessee, leading to the dismissal of the Revenue's appeal. 3. Lastly, the dispute regarding the valuation of unquoted shares of M/s Oswal Woollen Mills Ltd. was raised by the Revenue. The GTO valued the shares at a higher rate than the AAC, leading to a reduction in the value of the shares for gift-tax purposes. However, since the Tribunal annulled the lower authorities' orders based on the first issue, it did not delve into the valuation of the shares fixed by the AAC. Consequently, the appeal by the assessee was allowed, and that by the Revenue was dismissed.
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