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TMI Blog1986 (12) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... the declared consideration and the deemed value of the consideration, has been taken into account for computation of capital gains, the said amount of Rs. 52,000 could not be charged to gift-tax ? (2) Whether, on the facts and in the circumstances of the case, the learned Tribunal was justified in dismissing the departmental appeal following the lone judicial opinion favourable to the assessee and ignoring the various decisions of the various High Courts in favour of the Department on the issue ? " In assessment year 1967-68, the assessee sold his house situated at Station Road, Bareilly, for Rs. 1,00,000. In the assessment year 1967-68, the Income-tax Officer with the approval of the Inspecting Assistant Commissioner applied the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e than that declared. These are two distinct provisions for levy of gift-tax and tax on capital gains. For the purpose of the Gift-tax Act, it was Rs. 52,000 in the instant case but for the purpose of the Income-tax Act, the difference between the actual cost and the market value. That being the capital gain, the tax was liable to be levied on that amount. There is thus no question of treating the same amount as a gift and as a transfer resulting in capital gain. It is, therefore, incorrect to say that the same amount is taxed twice over if gift-tax is liable to be paid under section 4 on the basis of deemed gift on which capital gains tax has been realised under section 52 of the Income-tax Act. In Sardarni Ahilya Raghbir Singh Raja Sans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is the income that accrues or arises or is deemed to accrue or arise as a result of the transfer that is subject to assessment under the Income-tax Act. It is the transaction of the gift itself, i.e., the transaction used for transmission of title that is assessed under the Gift-tax Act. So understood, there is no question of double taxation. " Not only is the object of a transaction under section 52 of the Income-tax Act and under section 4 of the Gift-tax Act different but also its implications on the assessee. The liability in one case would be different from the other. In ITO v. Buragadda Satyanarayana [1977] 106 ITR 333, the Andhra Pradesh High Court held that even if the assessee had been assessed to gift-tax on the difference b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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