JAGAN NATH SYAL Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) This reference under Section 26 (1) of the Gift Tax Act, 1958 pertains to Assessment Year ("AY") 1992-93.

(2.) The questions framed by the Special Bench "A" of the Income Tax Appellate Tribunal ("ITAT") by its order dated 2nd September 2002 for consideration before this Court read as under:

(3.) The Assessee filed its income tax return declaring a gift of Rs. 2,85,504. This pertained to the gift of one share of the Delhi Stock Exchange Ltd. ("DSE") by the Assessee to his son, Mr. Vijay Kumar Syal, on 9th March 1992. The Assessing Officer ("AO") was of the view that the donee, as a result of the said gift, acquired the right to enter the trading ring on the floor of the stock exchange as a broker. According to the AO, the composite value of the gift of the share of DSE comprised both the share itself and the right to enter the trading ring as member of the DSE. Thus, he worked out the value of the gift at Rs. 40 lakhs.