P.S. KHANNA Vs. GIFT TAX OFFICER

JUDGEMENT

(1.) 10/Del/1999 relevant for the asst. yr. 1993 -94. 2. After hearing learned counsel for the parties, we are of the view that the following substantial question of law arises for consideration - - 68,31,732 has escaped assessment ? 3. Filing of paper books is dispensed with. 4. The assessee had entered into a sale transaction for a plot of land measuring 2.56 acres along with boundary wall for 5. For the asst. yr. 1992 -93, the AO charged capital gains tax on the assessee in respect of this transaction and the said tax was paid.

(2.) For the subsequent asst. yr. 1993 -94, the GTO came to the conclusion, based on a reply that he had called from the Departmental Valuation Officer (DVO), that the sale price had been greatly depressed and in fact the market value of the land with the boundary wall was Rs. 68,31,732. According to the GTO the difference of Rs. 58,72,132 was liable to tax as a deemed gift under the GT Act, 1957 (for short the Act).

(3.) The contention urged by the assessee was that since it had already paid tax on capital gains in respect of the same transaction concerning the same property in the asst. yr. 1992 -93, there was no question of a deemed gift, if any, having taken place in the asst. yr. 1993 -94. According to the assessee, the property could be transferred only once and, therefore, the year of assessment both for the purposes of capital gains as well as for gift -tax will have to be the same there cannot be separate assessment years in respect of the same transaction, one for capital gains and the other for a deemed gift.