MAHAVIR PRASAD JAIPURIA Vs. GIFT TAX OFFICER

JUDGEMENT

(1.) The petitioner in this case has questioned the valuation made by the concerned respondents under the provisions of Gift Tax Act. The valuation of the property was made by the second respondent upon issuing a show cause notice to the petitioner. The proposed valuation of the said property is the subject matter of the writ petition.

(2.) In view of the order proposed to be passed by us, it is not necessary to state the facts of the case in great details. Suffice to note that the petitioner submitted gift tax returns for the year 1975-76 including the valuation of his 173rd share of the property situated at 8, Prithviraj Road, New Delhi with the first respondent who appointed second respondent as the Valuation Officer. Respondent No.2 issued notice to the petitioner intimating him about the valuation to be Rs.4,34,400.00. The petitioner filed objections and informed that the assessments for the years 1971-72 to 1977- 78 were subject matters of C.W.No.649/79 pending in the High Court. The second respondent, however, assessed the property on the basis of earlier order dated 24.2.1978 at the same value under Section 16 A(5) of the Wealth Tax Act. Section 6 of the Gift Tax Act reads thus:

(3.) The said rules are procedural in nature and partake of the character of a rule of evidence. A rule, which is procedural in nature, will apply to a pending proceeding also. The respondents admittedly have not valued the properly in terms of the said rules.