1991 (6) TMI 40

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..... s of the case, the Tribunal was justified in law in directing that the value of gift forgone be taken at 10 % value of three years 'purchase value ?" That the assessee had gifted 20% of her interest in the partnership in favour of her daughters-in-law is beyond dispute. The purchase value of the above 20 %, therefore, is required to be calculated. The assessing authority determined the five-ye .....

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..... ation as made by the Gift-tax Officer against managerial remuneration of 15% taken at Rs. 17,736, we would direct a deduction of Rs. 2,500 per month, that is Rs. 30,000 This we do because it was ascertained that the partners themselves are mainly attending to the business of canvassing orders. Other salaries paid are comparatively low. We would also direct that the value of the right forgone be ta .....

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..... ission, because, it is the common case of the parties that the assessee had gifted 20% of her right in the partnership in favour of her daughters-in-law. If that be the position, there is no reason why the Tribunal reduced that to 10%. The direction to reduce the purchase value of the gift from 20% to 10%, under the circumstances, is erroneous. It is this finding that is challenged by the Depart .....

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