1967 (9) TMI 23

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.... jointly executed a gift deed on January 13, 1958, conveying certain immovable properties to their children. Some of these properties belonged exclusively to the assessee and some others were jointly owned by the assessee and his wife in equal shares. A copy of the gift deed is appendix 'A' and forms part of this statement. The gifted properties included a piece of land of the extent of 7.1 acres situated at Thiruvella. The Gift-tax Officer determined the value of this item of property at Rs.87,500. This valuation was confirmed by the Appellate Assistant Commissioner of Gift-tax. In the further appeal filed by the assessee before the Tribunal, valuers were appointed under section 23(6) of the Gift-tax Act to value this item of property. ....

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....circumstances of the case, the Tribunal was right in law in altering the valuation fixed by the valuers under section 23(6) of the Gift-tax Act, in respect of 7.1 acres of land at Thiruvella ? " On behalf of the assessee a preliminary objection was taken before us that the reference made by the Tribunal is incompetent because the question of law referred by the Tribunal is not one " arising out of " its order, within the meaning of section 26(1) of the Gift-tax Act. It is urged on behalf of the assessee that the question whether it was open to the Tribunal to alter the valuation fixed by the valuers had not been raised at all before the Tribunal nor had it been dealt with or decided by them. It is contended that in such circumstances the....

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....by it. In Commissioner of Income-tax v. Scindia Steam Navigation Co. Ltd. the Supreme Court had occasion to consider the scope of the words " any question of law arising out of such order " occurring in section 66(1) of the Indian Income-tax Act (II of 1922) and their Lordships have laid down as follows at page 611 : " The result of the above discussion may thus be summed up : (1) When a question is raised before the Tribunal and is dealt with by it, it is clearly one arising out of its order. (2) When a question of law is raised before the Tribunal but the Tribunal fails to deal with it, it must be deemed to have been dealt with by it, and is, therefore, one arising out of its order. (3) When a question is not raised before ....