Gift tax on transferred property upheld where title and possession were found with the assessee, not the trust.

Ownership of the gifted land and building was found to rest with the assessee, because the deed materials showed title, possession and enjoyment in the assessee and no reliable evidence proved that the trust financed or owned the construction. The Tribunal noted that the Supreme Court had limited the challenge to the ownership of the building, so the valuation point did not arise. On that factual basis, the transfer to the son under the partition deed fell within the deeming provision for gift tax and was treated as a deemed gift.

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Issues: Whether the gifted land and building belonged to the assessee or to the trust, and whether the transfer was liable to be taxed as a deemed gift.

Analysis: The order records that the Supreme Court had permitted challenge only on the question of ownership of the building, and therefore the valuation challenge was treated as not arising. On the ownership issue, the Tribunal accepted the appellate finding that no reliable material established ownership of the building in the trust. The deed materials relied on by the appellate authority showed that the assessee had title, possession and enjoyment over the property and that the college buildings and related assets were allotted along with the property. In the absence of convincing evidence that the trust financed or owned the construction, the property was treated as belonging to the assessee. The transfer to the son through the partition deed was therefore brought within the deeming provision for gift tax.

Conclusion: The gifted property was held to be owned by the assessee and taxable as a deemed gift; the assessee's appeal failed.

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