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TMI Blog1991 (8) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... e and are subject-matter of transfer/gift. The issue is the valuation and the work out of the same for the purpose of its charge to gift tax under the provisions of Gift-tax Act, 1958 ; and (2) as to whether, on the facts and in the circumstances of the case, a gift of shares of the above-named company by the assessee to M/s Yogesh Chander Bros. Associates (in GTA Nos. 2 3), and of the same number of shares to M/s Om Parkash Pankaj Munjal Associates (in GTA No. 5) is a valid gift or a void one since the gifts have been made by the donors with an option to exercise revocation of the gift. The revocation of the gift could be exercised by the donors after 74 months but before 82 months. The assessee claims the gift to be a valid one but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer ". The assessee has also placed strong reliance on the decision of the ITAT Madras Bench-C which is reported as GTO v. Smt. Valli Alagappan [1990] 33 ITD 222. 5. In the face of the decision of the ITAT in the case of one Mrs. Vidya Wati Munjal, which was made on identical facts and where the assessee had failed at the ITAT stage, Shri Subhash Aggarwal, the learned authorised representative of the assessee, has made the following further contentions since, according to him, the ITAT should have a departure from the earlier decision and the issue merits to be considered afresh : (1) Before the earlier Bench, Judgment of the Hon'ble Supreme Court in CGT v. Executors and Trustees of the Estate of Late Shri Ambalal Sarabhai [1988] 170 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Representative supported the orders of the ld. lower authorities placing strong reliance on the decision of the ITAT rendered in the case of Smt. Ved Wati Munjal. He has as such contended that fsjudicial discipline and propriety requires that on identical facts, particularly in the case of the same group of assessees, the same view be taken. He has emphasised that the said order of the ITAT stands accepted by the assessee since it has been duly stated in the open court that no reference application has been filed by the assessee against the said decision of the ITAT. The learned Senior Departmental Representative has also pointedly referred to sections 3, 6 and 46(4) of the Gift-tax Act for the proposition that the assessment has to be in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Estate of Late Shri Ambalal Sarabhai's case --- all being decisions of the highest Court of the land, assessment has to be in terms of those decisions and there is no escape on that count. Under Article 141 of the Constitution of India, the law declared by the Supreme Court shall be binding on all Courts within the territory of India. This is what that article provides. Unfortunately, these decisions of the Hon'ble Supreme Court were not cited before the earlier Bench of the ITAT hence in view of this position, a departure is warranted and we have accordingly held to be so. The valuation of unquoted equity shares has to be on the basis of yield method as has been held by the Hon'ble Supreme Court in the abovementioned three decisions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e years for which it is to be determined shall, for the purposes of this rule, be the amount of the total receipt received or receivable for each such year, reduced by the amount of expenditure which, in the opinion of the Assessing Officer, would, reasonably be incurred for the purposes of making or earning the income : Provided that where there are no receipts or where the total of the receipts is, in the opinion of the Assessing Officer, lower than the receipts which an owner of ordinary prudence would obtain or earn on such property or properties similar to that during the relevant period, the Assessing Officer shall, after giving the assessee a reasonable opportunity of being heard, determine the income on the basis of receipts which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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