COMMISSIONER OF GIFT TAX Vs. RATTAN CHAND OSWAL

JUDGEMENT

(1.) BY this petition under s. 26(3) of the GT Act, 1958 (for short the Act), the Revenue seeks a direction to the Tribunal, Chandigarh Bench, Chandigarh (for short the Tribunal), to state the case and refer the following question, stated to be one of law, arising out of GTA No. 30/Chd/1982 pertaining to the asst. yr. 1974 -75 :

(2.) BRIEFLY stated, the material facts relevant for the purpose of this petition are as follows :

(3.) DURING the course of proceedings under the income -tax for the relevant assessment year, the ITO noticed that the assessee had sold 776 shares of M/s Oswal Spinning & Weaving Mills Ltd. at the face value of Rs. 100 per share. He referred the matter of valuation of these shares to the Valuation Officer under s. 55A of the IT Act, 1961, who evaluated the shares at Rs. 358.50 per share. Adopting the said value he computed the capital gains of the shares transferred in the hands of the assessee. Simultaneously, as GTO he treated the difference between the declared sale consideration and the value of the shares as determined by the Valuation Officer as deemed gift and subjected an amount of Rs. 2,00,596 to gift -tax. 3. Aggrieved, the assessee preferred appeal to the AAC, who set aside the assessment, inter alia, on the ground that the method of valuation adopted by the Valuation Officer was not correct, in view of the decision of the apex Court in CWT vs. Mahadeo Jalan & Ors. 1972 CTR (SC) 395 : (1972) 86 ITR 621 (SC).