1978 (8) TMI 98

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....n the share of Shri L.C. Khanna. According to the GTO the value of the entire property as discussed in W.T. assessment of assessee comes to Rs. 2,33,300 out of which land valuing to Rs. 90,000 was allotted to Shri L.C. Khanna. The excess value allotted to Shri L.C. Khanna was treated by the GTO as gift from assessee to Shri L.C. Khanna within the meaning of gifts as per GT Act. As against the above observation of the GTO, the assessee contended vide its explanation dated 19th April, 1976 that the extra land had been given to his brother in consideration of his relinquishing his 1/4th interest in the residential building wholly taken over by Shri M.C. Khanna under s. 118 of the Transfer of Property Act. According to the GTO when two persons ....

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.... 3. In appeal the AAC gave a relief of Rs. 7,452 and hence this appeal by the assessee before us. 4. Heard both the learned counsel for the assessee Shri N. Srinivasan and the learned departmental representative Shri Shiv Prasad. In our view there is substance in the appeal filed by the assessee. As a matter of fact, the authorities below were wrong in assuming that there was a gift and that it came under the purview of the provisions of s. 4(1)(c) of the GT Act. As a matter of fact, it was a mutual exchange and the matter could not legally fall under the provisions of s. 4(1)(c) of the Act. In this case the assessee purchased the entire premises as land building at D.58/52 Sigra, Varanasi by Sale Deed dated 18th Nov., 1974. Some port....