1984 (7) TMI 16

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..... e two cases by the Tribunal to this court for its opinion is as follows : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in taking the value of the land gifted in the assessee's case at Rs. 37,500 per ground ? " The assessee in the first case gifted an extent of five grounds in Mount Road to one V. Kandaswamy and the assessee in the other case h .....

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..... on and valued the properties on the basis of the value adopted in the Wealth-tax assessments, i.e., the property which is the subject matter of gift in T.C. No. 438 of 1978 was assessed at Rs. 50,000 per ground and the property which is the subject matter of gift in T.C. No. 60 of 1978, at Rs. 60,000 per ground. The orders made by the Gift-tax Officer were challenged in appeal before the Appellat .....

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..... eferences. According to the learned counsel for the Revenue, the reasoning given by the Tribunal for reducing the value of the gifted property to Rs. 37,500 is not justified and the reasons given by the Tribunal for making such a reduction are not also germane or relevant. A perusal of the order of the Tribunal does not indicate clearly as to what were the reasons for the reduction in the value o .....

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..... elevant criteria for determining the value of the gifted property; we are not inclined to agree with the Tribunal that the gift-tax liability which has been fastened on the donees under the gift deeds could at all be taken into account while fixing the value of the gifted properties. Even though the gift deeds have provided that the gift-tax is payable by the donees, the primary liability to pay t .....

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..... proceeded against for realising the gift-tax. But that does not mean that the value of the gift can be taken to be the market value less gift-tax, as has been assumed by the Tribunal in this case. Since the Tribunal, in our view, has taken an irrelevant consideration for fixing the value of the gift, we have to answer the question in the negative and in favour of the Revenue. The result is the Tr .....

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