COMMISSIONER OF INCOME TAX Vs. S VIJI

JUDGEMENT

(1.) AT the instance of the Revenue, the following question of law has been referred to us for our consideration by the Income-tax Appellate Tribunal :

(2.) THE year of assessment with which we are concerned is 1973-74. THE assessee is an individual. She gifted during the course of the previous year relevant to 1973-74, 4,500 shares held in the company, T.V. Sundaram Iyengar and Sons Private Limited, and 240 shares held in the company, Southern Roadways Private Limited. She made the gift on March 28, 1973, to Miss Niveditha Ram. While completing the assessment for the assessment year 1973-74, the Gift-tax Officer valued the shares by applying the break-up value method by taking the balance-sheet as on March 31, 1973, which was nearer to the date of gift. On appeal, the Appellate Assistant Commissioner and the Appellate Tribunal held that the balance-sheet as on March 31, 1972, has to be taken into account for the purpose of assessment. THE Revenue took the matter to this court and this court in T. C. No. 1182 of 1977 by a judgment dated December 18, 1981, held that the relevant balance-sheet that has to be taken into account will be the balance-sheet dated March 31, 1973, and directed the Appellate Tribunal to determine the value of the share on the basis of the balance-sheet as on March 31, 1973. THE apex court in the case reported in S. Viji v. CGT [1998] 229 ITR 421 has affirmed the judgment of this court.