COMMISSIONER OF GIFT TAX Vs. VENU SRINIVASAN

JUDGEMENT

(1.) AT the instance of the Revenue, the following questions of law have been referred for our consideration under Section 26(1) of the Gift-tax Act, 1958.

(2.) THOUGH the assessee was served on October 8, 1997, there was no representation for and on behalf of the assessee.

(3.) SINCE we are holding that the Tribunal was not correct in taking into account the balance-sheet as on March 31, 1973, for determining the value of shares, we are of the opinion that it is not necessary to render any answer to questions Nos. 3 to 5 as the answer to the questions would depend upon the decision to be rendered by the Tribunal on the first question. The same mode was also adopted by this court in CGT v. Gopal Sri-nivasan (Minor) [1995] 214 ITR 641 (Appex.), wherein this court considered five identical questions and has not rendered any answer to questions Nos. 3 to 5, but directed the Appellate Tribunal to consider the value of the shares on the basis of the decision in CGT v. Venn Srinivasan [1985] 156 ITR 679 (Mad), i.e., to determine the value of shares on the basis of the balance-sheet nearer to the date of the gift. SINCE we are holding that the Tribunal was not correct in taking into account the balance-sheet as on March 31, 1973, for the purpose of valuation of the shares, the appropriate course would be not to render any answer to questions Nos. 3 to 5, but for the final determination of the value of the shares to be made by the Tribunal on the first question. In this view of the matter, we answer the questions of law referred to us as under :