2003 (4) TMI 23

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.... Tribunal has referred the following question for our opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in quashing reassessment proceedings taken by the Gift-tax Officer?" The assessee had sold 49.50 bighas of land on July 1, 1972. No return of gift was filed by the assessee. However, the Gift-tax Officer later on had the opinion that the as....

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....e claim of the assessee. He estimated the fair market value of the land at Rs. 5,000 per bigha and brought to tax the deemed gift at Rs. 2,15,400. In appeal before the Commissioner of Gift-tax (Appeals), he has reviewed the estimated market value of the land on the date of sale at Rs. 75,000 and directed the Gift-tax Officer to recompute the gift taking the value of the land at Rs. 75,000. I....

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.... submits that as the value of the transferred agricultural land has been taken at Rs. 1,00,000 finally by the Tribunal and the assessee has shown the amount of sale at Rs. 34,600, at least the difference between Rs. 1,00,000 and Rs. 34,600 should be taken as deemed gift and that could be taken as assessee has not disclosed truly and fully material facts. Therefore, the assessment can be made after....

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.... adequate consideration, the amount by which the market value of the property at the date of the transfer exceeds the value of the consideration shall be deemed to be a gift made by the transferor. The facts are not in dispute that no gift-tax returns were filed. In the income-tax proceedings, the assessee has disclosed this transaction of the land and the Income-tax Officer who also happened t....