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Issues:
1. Whether the Revenue's appeal against the order of the CGT(A) regarding deemed gift tax assessment is justified. Analysis: The appeal by the Revenue was directed against the order of the Chief Commissioner of Gift Tax (CGT(A)), pertaining to the assessment year 1987-88. The Revenue contended that the Assessing Officer (AO) initiated gift tax proceedings based on the fair market value estimated by the Government valuer, which was higher than the sale price declared by the assessee. The AO assessed a deemed gift representing the difference between the declared sale price and the valuer's estimate. The CGT(A) cancelled the assessment, stating that the AO failed to establish inadequacy of consideration and did not provide any other material to support the deemed gift assessment. During the proceedings before the CGT(A), the assessee argued that the AO did not initiate proceedings under the Income Tax Act or Wealth Tax Act, despite suggestions by the audit. The assessee contended that the sale was bona fide, the transferee was not related, and no capital gains tax was charged in income tax proceedings. The CGT(A) accepted these arguments and cancelled the assessment, emphasizing the lack of evidence of inadequate consideration or lack of bona fide transaction. The Tribunal analyzed the case, emphasizing the necessity for the AO to prove inadequate consideration to invoke gift tax provisions. Referring to precedent, the Tribunal highlighted that unless the price "shocks the conscience of the Court," it cannot be considered inadequate. The Tribunal noted that the AO solely relied on the valuer's report without providing a copy to the assessee or establishing the fair market value's correctness. Additionally, the Tribunal found no evidence of lack of bona fide transaction or tax evasion. Consequently, the Tribunal rejected the Revenue's appeal, upholding the CGT(A)'s decision to cancel the assessment. In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the CGT(A)'s decision to cancel the deemed gift tax assessment due to the lack of evidence of inadequate consideration or lack of bona fide transaction, and the AO's failure to provide necessary documentation or reasons for relying on the valuer's report.
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