COMMISSIONER OF GIFT TAX Vs. PRAFULLA CHANDRA GOSWAMI

JUDGEMENT

(1.) IN this gift-tax reference under Section 26(1) of the Gift-tax Act, 1958 (for short, "the Act"), the following two questions have been referred to this court for opinion :

(2.) THE facts for the purpose of answering these two questions may be narrated as follows :

(3.) MR. Joshi submits that as the valuation of property made by the Wealth-tax Officer was not challenged before a higher authority, it should be deemed that the assessee accepted the same and it became final. For the purpose of Section 4 that should be the price and if that was the price, Rs. 15,000 was not the price of the property and in that view of the matter the decision of the Appellate Assistant Commissioner and for that matter the decision of the Tribunal were wrong. Dr. Saraf, on the other hand, submits that merely because the Wealth-tax Officer assessed the valuation of the property that cannot be the ultimate finding so far as the gift-tax is concerned. The Gift-tax Officer has to determine the value of the property on his own as indicated under Section 6. Dr. Saraf further submits that the Appellate Assistant Commissioner having held that the Assessing Officer could not substitute Rs. 1,00,313 when the documented price was Rs. 15,000, there cannot be a deemed gift.