ZIAUDDIN AHMED Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) THE following two questions cf law have been referred by the Income-tax Appellate Tribunal as arising out of the Tribunal's order in G.T.A. No. 7 (Gauhati) of 1968-69, dated April 24, 1972, under Section 26 of the Gift-tax Act:

(2.) THE following facts appear from the statement of the case.

(3.) ON the above facts, in the income-tax assessments, the provisions of the proviso to Section 12B(2) were applied and some capital gains were worked out in the hands of the assessee. At the same time, in the gift-tax proceedings the Gift-tax Officer held that the difference between the market value of the shares and the value at which the actual transfer was made represented deemed gifts in the hands of the assessee. This order was confirmed by the Appellate Assistant Commissioner though he reduced the quantum of gift by taking a smaller market value of the shares.