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Issues:
1. Incorrect valuation of gifted property by GTO under Gift Tax Act. 2. Disagreement on the market value of the property and the deduction of unearned increase. 3. Interpretation of Society's bye-laws regarding transfer fees. 4. Application of relevant case laws on valuation of gifted properties. 5. Dispute over the CGT's revisional order and directions given. Analysis: 1. The appeal was against the revisional order of the CGT, Pune, under section 24(2) of the Gift Tax Act, 1958, regarding the erroneous valuation of a gifted property by the GTO for the assessment year 1982-83. The GTO had deducted 50% of the unearned increase in market value, leading to a lower valuation of the property at Rs. 50,000, which was contested by the CGT as prejudicial to revenue. 2. The CGT disagreed with the GTO's valuation methodology and directed a revaluation at the market value without the adjustment of 50% unearned increase. The CGT emphasized that the transfer between the lessee and legal heir did not require payment to the Society as per bye-laws, making the deduction unjustified. The valuer's report and objections were considered, leading to the appeal before the Tribunal. 3. The dispute involved the interpretation of the Society's bye-laws regarding transfer fees and obligations in the case of a transfer to immediate family members or legal heirs. The learned counsel for the assessee argued that the market value should be adjusted by the contribution to the Society, citing relevant case laws and provisions from the Gift Tax Act and Wealth Tax Act. 4. The learned departmental representative supported the CGT's revisional order, emphasizing that only the market value of the property should be considered in gift transfers. Reference was made to relevant judgments, distinguishing between Wealth Tax and Gift Tax valuations. The Tribunal analyzed various case laws on valuation based on specific circumstances and legal obligations related to the transfer of properties. 5. The Tribunal examined the facts, including the pre-amended and amended provisions of the Society's bye-laws, which exempted immediate family members from additional payments. The exception provided in this case distinguished it from previous cases cited by the assessee's counsel. The Tribunal concluded that the CGT's revisional order was justified, and the market value should be determined without adjusting the unearned increase, leading to the dismissal of the appeal. In conclusion, the Tribunal upheld the CGT's decision, emphasizing the specific circumstances of the transfer to the legal heir and the exemption from additional payments as per the Society's bye-laws. The valuation of the gifted property without the deduction of unearned increase was deemed appropriate, leading to the dismissal of the appeal.
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