9911796707
TMI Blog1991 (2) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 31, 1978. The respondent-assessee owned a rubber estate measuring 30.71 acres in Kanjirappally. He mortgaged the said estate to his son in 1968 for six years for a sum of Rs. 25,000. By a document dated March 30, 1978, the ownership of the estate was transferred to his son for a consideration of Rs. 35,000. The Gift-tax Officer held that there is an element of gift involved in the said transfer. He valued the rubber estate at Rs. 6,000 per acre and determined the value of the estate at Rs. 1,84,260. Gift-tax was levied thereon in the sum of Rs. 20,352. In appeal, the Appellate Assistant Commissioner, by his order dated April 21, 1983, affirmed the said decision. He held that the rubber estate is in the Kanjirappally area, one of the best ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such a finding of fact. But, even the finding of fact can be assailed if it is unsupported by any material or is arbitrary or based on surmises and conjectures. The Tribunal had a duty to demonstrate that the decision appealed against before it was wrong before interfering with the order passed by the Appellate Assistant Commissioner. In paragraph six of the order dated November 6, 1985, the Tribunal agreed with the Appellate Assistant Commissioner that there is an element of gift in the transfer effected by the assessee to his son. But, it was observed that the Appellate Assistant Commissioner's order is based on presumptions and surmises in fixing the value of the gift and he has not taken into account the facts on record. What those fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the locality. The observation of the Tribunal that the value of the land can be reasonably determined at Rs. 1,500 per acre is a wild surmise and, on the face of it, it is arbitrary. It is on the above reasoning that the Tribunal has fixed the taxable value of the gift at Rs. 70,000. We are of the view that the reasoning and conclusion of the Tribunal aforesaid is solely based on conjectures and surmises and the value was fixed in a most arbitrary manner. The question referred to this court is answered in the affirmative, in favour of the Revenue and against the assessee. The Appellate Tribunal shall restore the appeal to file and dispose of the appeal in accordance with law afresh. The reference is answered accordingly. A copy of this ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
