Stamp duty valuation cannot replace actual sale consideration for deemed gift computation without independent evidence of understatement.

Stamp duty valuation cannot, by itself, be treated as the actual sale consideration for computing a deemed gift where no independent material shows that the declared consideration was understated. The analysis follows a coordinate bench view that the Sub-Registrar's value is only a stamp duty benchmark and does not establish the real transaction price in the absence of contrary evidence. On that basis, the deemed gift computation based solely on the stamp duty value was not sustainable, and the assessee succeeded on the issue.

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Issues: Whether the value adopted by the Sub-Registrar for stamp duty purposes could, without any supporting material, be treated as the actual sale consideration and used as the basis for computing deemed gift under section 4(1)(a) of the Gift-tax Act.

Analysis: The assessment was founded on a deemed gift computed by substituting the stamp duty valuation for the declared consideration. The record contained no independent material to show that the real sale consideration was higher than the amount stated by the assessee. The issue was already covered by a coordinate bench decision holding that stamp duty valuation, by itself, cannot be equated with actual consideration for the purpose of working out deemed gift in the absence of contrary evidence.

Conclusion: The stamp duty value could not be adopted as the actual consideration for deeming a gift, and the assessee succeeded on this issue.

Ratio Decidendi: In the absence of material showing that the real sale consideration exceeded the declared consideration, the value adopted for stamp duty purposes cannot be treated as actual consideration for computing deemed gift.

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