2005 (2) TMI 89

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.... 2. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that there was no deemed gift in the case?" The present reference relates to the assessment year 1981-82. Briefly stated the facts giving rise to the present reference are as follows: From the income-tax records of the late Raja J.P. Singh, the Gift-tax Officer found that during his lifetime, he has executed certain sales deeds in respect of some immovable properties and the sale consideration as disclosed in the sale deeds, was to the rune of Rs. 1,25,000; but the registration authorities took the value of the properties for stamp duty purposes at Rs. 1,79,000. The difference of Rs. 54,000 was subjected to tax by the Gift-....

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....reating it as a deemed gift. He submitted that the value of the property disclosed for the purposes of stamp duty has not been disputed by the assessee and, therefore, the tax has rightly been imposed. Sri Shakeel Ahmad, learned counsel for the respondent-assessee, submitted that the sale consideration of the property in question was only Rs. 1,25,000 and the sale has not been effected to relatives or friends but to strangers/third parties and only for the purposes of stamp duty the value was taken at Rs. 1,79,000 against the actual value of Rs. 1,25,000. He submitted that payment of stamp duty would not be determinative of the fair market value of the properties in question as it may be more than the actual sale consideration paid. H....