STEPHEN M K Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) THE questions referred for our opinion read as under :

(2.) FACTS relevant and requisite to decide these issues lie in a narrow compass. The assessee made a gift of 27.75 acres of land situate in Amarambalam Village in Eranadu Taluk of Malappuram District in favour of his favour children for the purpose of education. This transaction was the subject-matter of an assessment dated August 19, 1971. The assessee was not satisfied with assessment order and therefore, he filed an appeal before the Commissioner (Appeals). The Commissioner (Appeals), as per his order dated August 18, 1973, set aside the assessment order and remitted the matter to the Gift-tax Officer to make a fresh assessment. The Gift-tax Officer, thereafter, made an assessment and, while determining the value of the property gifted, treated the income the donees were getting as part of the corpus. The order was under challenge before the Commissioner (Appeals). The Commissioner, by his order dated December 26, 1974, allowed the appeal. Relevant part of the said order reads :

(3.) IN the light of the above observation of the Division Bench, we are of the view that the order of Tribunal to the contrary is not sustainable.