1998 (6) TMI 62

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.... Pursuant to the directions given by this court, the Income-tax Appellate Tribunal referred the following question for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law and fact in determining the value of the property gifted at Rs. 1,00,000 ?" The facts in brief, are that the assessee, a medical practitioner, made a gift ....

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....to the Commissioner of Gift-tax, who stated that part of the gifted property had been let out to Lakshmi Vilas Bank on a monthly rent of Rs. 2,000 in 1977. The area of such portion was 2,500 sq. ft., whereas the area of the gifted property was 2,860 sq. ft. The Commissioner of Gift-tax, taking into consideration the rental of Rs. 2,000 of a portion of the property let out to Lakshmi Vilas Bank, es....

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....t control laws for enhancement of rent, were taken by the donor and that if such steps were taken, the rent would have been much higher than Rs. 808 per month. This is how learned standing counsel submits before us that monthly rent of Rs. 808 cannot form the basis for estimating the value of the gifted property. He submits that the appellate authority was right in taking into consideration the re....

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....etched by the gifted property up to the date of the gift or the rent fetched by a portion of the building or the rent which was settled between the donee and the tenant after ten months of the date of gift, should form the basis for estimating the value. Since the gifted property was under tenancy right from 1965 up to the date of the gift, we see no good reason to take into account the rent fetch....