Valuation of deemed gift upheld where market value of transferred buses and route permits was accepted on the facts.

The proper market value of buses and route permits transferred to the daughters of a former proprietor was the only substantive issue in determining the deemed gift. The appellate authority accepted the assessee's valuation at Rs. 74,000 after considering the relevant circumstances affecting the assets, and that estimate was upheld. A higher sale realisation from other buses could not control the valuation of the 22 buses in question because there was no proof that the sale conditions were the same. The Revenue's challenge to the reduced valuation therefore failed.

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Issues: Whether the value of the deemed gift arising from the transfer of buses and route permits by the assessee to the daughters of a former proprietor should be fixed at Rs. 1,25,000 or reduced to Rs. 74,000.

Analysis: The only substantive controversy was the proper estimation of the market value of the assets transferred for the purpose of determining the deemed gift. The value shown by the assessee and accepted by the Gift-tax Officer was itself an estimate. The appellate authority accepted the assessee's working at Rs. 74,000 after taking into account the relevant circumstances affecting the value of the buses and route permits. The higher realisation from sale of other buses could not by itself govern the valuation of the 22 buses in question, since there was no proof that the circumstances of the two sets of sales were the same.

Conclusion: The reduction of the deemed gift to Rs. 74,000 was and required no interference.

Final Conclusion: The valuation adopted by the appellate authority was upheld and the Revenue's challenge failed.

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