COMMISSIONER OF GIFT TAX Vs. SUSHEELA SHANMUGASUNDARAM

JUDGEMENT

(1.) THE only question that arises in the facts of the case is with regard to the reopening of the assessment under S. 16(1)(b) of the GT Act, 1958. The assessee is an individual. She made a gift of a godown by a gift deed dt. 12th April, 1973 in favour of her husband's brother's daughter. The assessee returned the value of the gifted property as on the date of the gift at Rs. 1,60,000. It is seen that the registration authorities functioning under the State of Tamil Nadu accepted the valuation of the gifted property at Rs. 1,60,000. The assessee also relied upon the valuation report regarding the property and she has, by a letter addressed to the GTO, pointed out the facts and left the GTO to value the property as he likes. The GTO, after applying his mind, accepted the valuation at Rs. 1,60,000 and completed the assessment on 6th March, 1975.

(2.) SOME interesting development arose in the donee's assessment. The donee, on the basis of a valuation report, admitted the value of the gifted property at Rs. 2,91,000 as on June, 1976 in the wealth tax assessment proceedings of the donee. In pursuance of the admission by the donee of the value of the property at Rs. 2,91,000, the wealth tax assessment of the donee for the asst. yr. 1974 75 was reopened and the property was reassessed at the value of Rs. 2,20,000. The WTO by a letter, informed the valuation of the gifted property to the GTO and on the basis of the information received, the GTO issued a notice under S. 16(1)(b) of the GT Act to the assessee on 26th Feb., 1979 to show cause as to why the gift tax assessment already made should not be reopened to reassess the value of the gifted property at Rs. 2,20,000.

(3.) THE assessee preferred an appeal before the AAC against the order of reassessment made by the GTO. The AAC allowed the appeal on the ground that there was no case for reopening the assessment already made.