Gift-tax on partitioned property upheld; absolute control over allotted assets made the gift valid, and the assessed valuation stood.

Where property allotted on partition is under the assessee's absolute control, a subsequent transfer by gift is a valid disposition of owned property and is liable to gift tax; the plea that the assets were ancestral or family property did not defeat taxability. The valuation adopted for gift-tax purposes was also upheld because the declared figure had been accepted for registration and no reliable evidence showed a lower market value. In the absence of credible material to displace the assessment, both the validity of the gift and the valuation were sustained against the assessee.

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Issues: (i) whether the gift of land made by the assessee was taxable and valid when the assessee had already effected partition and was the sole surviving coparcener in respect of the properties allotted to him; (ii) whether the valuation adopted for gift-tax purposes was excessive.

Issue (i): Whether the gift of land made by the assessee was taxable and valid when the assessee had already effected partition and was the sole surviving coparcener in respect of the properties allotted to him.

Analysis: After partition between the assessee and his sons, the properties allotted to the assessee were under his absolute control. The plea that the lands were ancestral or family property did not assist him, because he had disposing capacity over the property in question. The subsequent civil proceedings did not negate the effect of the gift deeds, and the transfer remained one made by the assessee of property over which he had ownership and control.

Conclusion: The gift was valid and taxable; this issue was decided against the assessee.

Issue (ii): Whether the valuation adopted for gift-tax purposes was excessive.

Analysis: The declared value had been accepted for registration and was also found on enquiry by the appellate authority to be substantially correct. No reliable material was produced to establish a lower market value, and the mere assertion of a lower figure in civil proceedings was insufficient to displace the valuation adopted in assessment.

Conclusion: The valuation adopted in assessment was upheld; this issue was decided against the assessee.

Final Conclusion: The assessment was sustained in full, and the appeal failed on both validity and valuation.

Ratio Decidendi: Where the assessee has absolute disposing capacity over property allotted on partition, a gift of such property is valid and liable to gift tax, and the assessed value will be sustained in the absence of credible evidence showing a lower market value.

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