COMMISSIONER OF GIFT TAX Vs. ABRAHAM K J

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal (in short, "the Tribunal") has referred the following question of law for the decision of this court:

(2.) THE matter arises under the Gift-tax Act. We are concerned with the assessment year 1978-79, the accounting year ending on March 31, 1978. THE respondent-assessee owned a rubber estate measuring 30.71 acres in Kanjirappally. He mortgaged the said estate to his son in 1968 for six years for a sum of Rs. 25,000. By a document dated March 30, 1978, the ownership of the estate was transferred to his son for a consideration of Rs. 35,000. THE Gift-tax Officer held that there is an element of gift involved in the said transfer. He valued the rubber estate at Rs. 6,000 per acre and determined the value of the estate at Rs. 1,84,260. Gift-tax was levied thereon in the sum of Rs. 20,352. In appeal, the Appellate Assistant Commissioner, by his order dated April 21, 1983, affirmed the said decision. He held that the rubber estate is in the Kanjirappally area, one of the best areas for rubber, and that immediately after the transfer dated March 30, 1978, the rubber trees were cut and sold in April, 1978, for a consideration of Rs. 60,000, which is Rs. 25,000 more than the consideration shown in the sale deed dated March 30, 1978. He held that prima facie there is a gift.

(3.) A copy of this judgment under the seal of this court and the signature of the Registrar will be forwarded to the Income-tax Appellate Tribunal, Cochin Bench.