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Issues:
1. Determination of deemed gift in respect of 22 buses transferred by the assessee company to three persons. 2. Discrepancy in the valuation of the deemed gift between the assessee and the tax authorities. 3. Appeal against the Gift Tax Commissioner's decision to reduce the value of the gift from Rs. 1,25,000 to Rs. 74,000. 4. Argument by the Revenue that the value of the gift should be higher based on various factors including the sale of other buses by the assessee company. 5. Defense by the assessee regarding the valuation of the gift and reliance on the Commissioner's decision. 6. Analysis of the market value of the buses and confirmation of the Gift Tax Commissioner's decision by the Appellate Tribunal. Detailed Analysis: 1. The judgment pertains to an appeal by the Revenue regarding the assessment year 1968-69 concerning a deemed gift of 22 buses transferred by the assessee company to three persons, the daughters of a deceased individual. The transfer was made at the written down value appearing in the books of the assessee. 2. During the proceedings, the assessee agreed to file a return under the Gift Tax Act for the transferred buses, with the total value of the gift initially returned at Rs. 1,25,000. However, there were discrepancies in the valuation, with three calculations provided by the assessee ranging from Rs. 74,000 to Rs. 1,25,000. The Gift Tax Officer (GTO) accepted the value at Rs. 1,25,000, but the assessee appealed against its liability to gift tax and the valuation. 3. The Commissioner of Gift Tax (CGT) held the assessee liable for gift tax under section 4(1) of the Gift Tax Act but reduced the value of the gift to Rs. 74,000. This reduction in valuation was challenged by the Revenue in the appeal. 4. The Revenue contended that the assessee had admitted the deemed gift at Rs. 1,25,000, and the Commissioner was unjustified in reducing it. They argued that based on the sale of other vehicles and a computation of the fair market value, the gift's value should be higher, possibly around Rs. 5,37,000. 5. On behalf of the assessee, it was argued that the Commissioner's decision to value the gift at Rs. 74,000 was appropriate, considering various factors that affected the route permit's value. The assessee relied on the calculations provided during discussions and defended the Commissioner's decision. 6. The Appellate Tribunal upheld the Commissioner's decision, stating that the market value of the buses was an estimation, and the calculations provided by the assessee were reasonable. The Tribunal noted that the sale of other buses at higher prices did not necessarily reflect the market value of the transferred buses. Therefore, the Tribunal confirmed the CGT's order, dismissing the appeal by the Revenue.
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