Stamp duty valuation cannot replace market value for deemed gift taxation without independent evidence of higher consideration.

Stamp duty valuation fixed by the Sub-Registrar could not, by itself, be treated as the property's market value for attracting a deemed gift under section 4(1)(a) of the Gift-tax Act, 1958. A stamp duty assessment serves only the limited purpose of levy and does not establish actual market value. Because the transfer was for declared consideration and the Revenue produced no independent material showing that the assessee received more than that amount, the burden to prove a deemed gift was not discharged. No deemed gift was exigible on the facts.

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Issues: Whether the value fixed by the Sub-Registrar for stamp duty purposes could be treated as the market value of the transferred property so as to sustain a deemed gift under section 4(1)(a) of the Gift-tax Act, 1958.

Analysis: The transfer was for a declared consideration, and the Revenue relied only on the stamp duty valuation to allege inadequacy of consideration. A stamp duty assessment is made for the limited purpose of collecting duty and, by itself, does not establish the actual market value of the property. In the absence of independent material showing that the assessee received more than the declared consideration, the burden on the Revenue to prove a deemed gift was not discharged.

Conclusion: The stamp duty valuation could not be substituted for market value and no deemed gift was exigible on the facts.

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