9911796707
TMI Blog1978 (1) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty had been valued at Rs. 1,05,000 in the wealth-tax assessment for the year 1969-70 for the valuation date of 31st March, 69 by an assessment made on 23rd Jan., 70. He was of the view that the same value should be adopted and he computed the capital gains on that basis. He was also of the view that the difference between the consideration shown and the market value determined by him was a deemed gift and he raised a gift-tax assessment for the difference. Holding that the assessee had concealed the gift, he referred the matter to the IAC who imposed penalty under s. 17(1) (c) of the GT Act. 3. On appeal, the AAC was of the opinion that there was material to support the estimate made by the ITO and that the property could be reasonabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated in the document and in the absence of any such evidence, the difference between the estimated market value and the consideration shown in the document cannot be assessed to capital gains. The decision of the Kerala High Court relied upon by the Revenue was also considered and the Madras High Court has disagreed with it holding that s. 52(1) does not enable the Revenue to tax the difference between the market value and the sale-consideration when it was not in fact received by or accrued to the assessee. Several other decisions, such as the decisions of the Madras High Court in the case of Sundaram Industries Ltd(3)., and in the case of Sivakami Company Private Ltd. and others (88 ITR 311) and Karnataka High Court in the case of M. Rang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a commercial locality and one of the pieces of the land had no access to a regular road and its value should be taken at Rs. 1,000 per katha as evidenced by one of the sale deed produced by the assessee. On the other hand, the Revenue relied on the comparative sales considered by the AAC and contended that the rate of Rs. 7,500 per katha was itself determined after consideration of the contentions of the assessee. 7. On a careful consideration of the rival submissions, we are of the opinion that the market value of the property was certainly more than the consideration shown in the sale deed but it may not be the same as that determined by the authorities below. The land sold consists of two items of property. One item which was an extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be made for lay out and roads etc. before it can be said that the prices fetched by the tiny plot could be applied to the lands under consideration and in so doing a discount of nearly 30 per cent would be made. Looked at from the point of view, it appears that cases relied on by the Revenue to show that lands in the area were worth Rs. 10,000 per katha must be taken with a discount. Secondly, there is not much evidence about the advantages to the lands which were the subject matter of the comparable sales while it is obvious that the present land was not situated in a commercial locality. Thirdly, it appears that this land was treated by the assessee himself as being worth about 4 times the worth of the land given to the daughter. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act and, therefore, there is no provision for imposing penalty for not disclosing the gift. Apart from the fact, it is also clear the assessee has disputing the question whether there was any deemed gift at all as this property had been assessed to wealth-tax for the Asst. yr. 1968-69 and earlier on the same amount of Rs. 20,490. In the circumstances, the claim of the assessee that the value shown in the sale deeds represented market value was a bona fide claim and there is no evidence of any deliberate concealment of the particulars of any gift. It is therefore, held that both on facts and in law the imposition of penalty under s. 17(1)(c) of the Act was not justified and we accordingly, cancel the penalty imposed. 10. In the resu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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