VIMALAN A Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) ONE Appavoo Pillai made a gift of three buses to his son, Vimalan, the assessee, under a registered settlement deed dated June 17, 1967. Under that deed the value shown for the three buses was Rs. 20,000. The Gift-tax Officer found that the written down value of the buses on the date of the transfer was Rs. 31,688. He, therefore, estimated the value of the buses at Rs. 31,688. In addition he also estimated the value of the route permits on which the buses were plying at the time of the transfer at Rs. 75,000 and computed the gift-tax payable on that basis.

(2.) THE matter was taken in appeal by the assessee to the Appellate Assistant Commissioner. It was contended by him that the route permits had not been transferred as they could not be transferred without the order of the Regional Transport Authority, and that, therefore, the value of the buses alone should be taken into account for computing the gift-tax. THE Appellate Assistant Commissioner rejected this contention on the ground that the routes had actually been transferred in favour of the assessee on the joint application of the transferor and transferee, and that the assessee in fact had carried on the business of plying the buses on the routes in question and enjoyed the income therefrom.

(3.) WE, therefore, answer the reference in the affirmative and against the assessee. The revenue will have its costs from the assessee. Counsel's fee Rs. 250.