9911796707
TMI Blog2003 (4) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings. - - - - - Dated:- 8-4-2003 - Judge(s) : Y. R. MEENA., K. C. Sharma. JUDGMENT On an application under section 26(1) of the Gift-tax Act, 1958, the Tribunal has referred the following question for our opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in quashing reassessment proceedings taken by the Gift-tax Officer?" The assessee had sold 49.50 bighas of land on July 1, 1972. No return of gift was filed by the assessee. However, the Gift-tax Officer later on had the opinion that the assessee had sold the land to persons closely related to him at a very nominal rate which was much below the market value and, as such, the difference between the market value and the actual p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of four years, when the assessee has disclosed all basic material facts, there is no question of assessing after four years from the end of the assessment year. Therefore, he quashed the assessment order made after notice under section 16(1) of the Act. Mr. Singhi, learned counsel for the Department, submits that as the value of the transferred agricultural land has been taken at Rs. 1,00,000 finally by the Tribunal and the assessee has shown the amount of sale at Rs. 34,600, at least the difference between Rs. 1,00,000 and Rs. 34,600 should be taken as deemed gift and that could be taken as assessee has not disclosed truly and fully material facts. Therefore, the assessment can be made after the expiry of four years from the end of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... When after seeing the reply to the queries raised regarding the transaction, no addition was made in the income-tax assessment, there is no justification in the gift-tax proceedings, after referring the matter to the Valuation Officer, to estimate the value of that agricultural land at a higher amount. Once the assessee has declared fully and truly all material facts for the assessment of that transaction, in our view, there is no justification to disturb that value in the gift-tax proceedings which has been accepted by the same Assessing Officer in the income-tax proceedings. Considering these facts, no interference is called for in the order of the Tribunal. In the result, we answer the question in the affirmative, i.e., in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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