9911796707
TMI Blog1980 (1) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... roceed consideration was calculated at the rate of Rs. 50 per square yard. In the original assessment made by the ITO on 7th Jan., 1975 on the basis of the information available to him as regard sales of similar plot of land, the ITO estimated the value of the land at Rs. 90 per square yard. He proceeded to make the assessment on the basis of the land at Rs. 90 per sq. yard. While doing so, however, he did not go through the formalities laid down under s. 52 of the IT act namely taking the required approval of the IAC. Further it was found that though the total area of land was 1,026 sq. yard, the ITO deducted therefrom 126 sq. yards which was stated on behalf of the assessee to be reserved for a public road. The CIT, therefore, by an order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or adequate consideration, he proceeded to apply the provisions of s. 4(1) (a) of the GT Act and he completed the assessment. 4. On appeal by the assessee before the AAC, against this GT assessment, the AAC held that the gift tax assessment under consideration before him was made on 1st Sept., 1976. This gift tax assessment was based on the original IT assessment made by the ITO on 7th Jan., 1975. Since the original income tax assessment on the basis of which the gift tax assessment was made, was set aside by the order of the CIT under s. 263 on 24th Dec., 1976, the entire base for the impugned gift tax assessment was demolished. Following the principle laid down by the ld. Judges of the Punjab Haryana High Court in the case of Sardari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply to the facts of the present case. 7. On behalf of the assessee, the ld. Counsel has submitted that he did not rely on the AAC's order for cancelling the assessment inasmuch as the CIT's order under s. 263 on the basis of which the AAC has proceeded to cancel by the income tax assessment, was cancelled by the Tribunal by their order dt. 12th June, 1978. The AAC's order is dt. 19th Sept., 1977 whereas the Tribunal has cancelled the CIT's order under s. 263 on 12th June, 1978. He, however points out that it was a moot point what was the fair market value of the property. According to the assessee, it was Rs. 50 per square yard according to the original income tax assessment of the ITO, it was Rs. 90 per square yard, and according to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders passed by the Collector. Therefore, on this analogy what the ITO stated in the assessment order cannot be taken as a foundation for the holding that there was inadequate consideration as far as gift tax matter is concerned." In our opinion, the above passage from the Nagpur Bench decision in the case of Shrimati Radhadevi Mor (3) properly brings out the legal position in this case. In the absence of any material whatsoever brought on record by the GTO to ascertain the real fair market value of the plot land, he could not have proceeded to determine whether there was any gift at all and if so, the extent thereof. This was particularly necessary in the fact that in the original IT proceedings, he proceeded to value the land at Rs. 90 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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