9911796707
TMI Blog1987 (7) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... ing partners. This right was quantified by taking the average of the last four years' profit and taking two years' purchase price, amounting to Rs. 3,30,782. The assessment order is dated June 18, 1970. There was an appeal before the Appellate Assistant Commissioner. He upheld the levy of gift-tax. He entertained doubts regarding valuation. He ordered a remit on that score. There was a further appeal to the Appellate Tribunal. In the meanwhile, the Appellate Assistant Commissioner passed rectification proceedings on June 28, 1971. He held that the devaluation profits should be excluded. Finally, the Appellate Tribunal passed an order on February 28, 1973. It upheld the levy of gift-tax. Regarding the quantification, the Appellate Tribunal d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price which is maintained. It was held that the profits of the business had been maintained at a high level even after devaluation and so, on facts, the Appellate Tribunal did not find a case for treating the change in the exchange rate as an extraordinary circumstance leading to profits. On merits, regarding quantification, it was limited to one year's purchase price. The assessee filed an application for referring a question of law which arose out of the appellate order. It was rejected. This court was moved in O.P. No. 1715 of 1978-D. In pursuance of the directions of this court, the following question of law has been referred by the Appellate Tribunal for the decision of this court: " Whether, on the facts and in the circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the total value of the "deemed gift ". Even otherwise, the assessee's plea should fail. Broadly stated, the devaluation profit is an unexpected phenomenon. It is not peculiar. In this case, the effect of the said devaluation continued even for subsequent years. The income which arose as a consequence of the devaluation is really a trading profit. It represents part of the sale proceeds. For the goods supplied, the assessee got an appreciated value. It cannot be denied that it is part of the trading profit in the hands of the assessee. In this view of the matter, we are unable to accept the plea of the assessee that the devaluation profits should not be reckoned for the purpose of fixing the total value of the deemed gift. We answer th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
