https://www.taxtmi.com/caselaws?id=68955 Gift-tax valuation of lands placed under a partnership arrangement had to reflect the restrictions attached to them, including limits on alienation, pre-emption rights in favour of co-partners, and the continuation of those obligations against heirs. The donor transferred only burdened rights, not an unrestricted title, so a willing buyer would pay less than full market value for the property as if free from encumbrance. The argument that improvements merged with the land did not justify ignoring the contractual and proprietary constraints, and section 51 of the Transfer of Property Act, 1882 did not support valuation at full market value. The lower valuation accepted by the first appellate authority was upheld. en-us Mon, 14 Jun 1982 00:00:00 +0530 Mon, 04 Apr 2011 12:01:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=68955 Gift-tax valuation of lands placed under a partnership arrangement had to reflect the restrictions attached to them, including limits on alienation, pre-emption rights in favour of co-partners, and the continuation of those obligations against heirs. The donor transferred only burdened rights, not an unrestricted title, so a willing buyer would pay less than full market value for the property as if free from encumbrance. The argument that improvements merged with the land did not justify ignoring the contractual and proprietary constraints, and section 51 of the Transfer of Property Act, 1882 did not support valuation at full market value. The lower valuation accepted by the first appellate authority was upheld. Case-Laws Income Tax Mon, 14 Jun 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=68955