Law:

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Section 6 of Gift-tax Act, 1958 - Valuation of gift - Assessee gifted certain land to his grandson - According to terms of lease deed, said land could not be transferred by sale for period of ten years - Tribunal held that value of gift was to be price paid by assessee for said land - Whether any question of law arose from Tribunal's order - Held, no FACTS The assessee gifted certain land to his grand son. According to assessee the value of land should be Rs. 15,136, which was the consideration which the assessee had paid for it. The assessee also contended that, according to the terms of the lease deed, for a period of 10 years said property could not be transferred. The GTO did not accept the contention and valued the said land at Rs. 3,37,792. An appeal was filed, but the same was dismissed by the AAC. The Tribunal however, held that the value of the gift was to be the price paid for the land. On application under section 256(2). HELD The question as to what had to be the value of the gift was a pure question of fact. The assessee had contended that the value should be Rs. 15,140, whereas the GTO had concluded that the value of the gift should be Rs. 3,37,792. The Tribunal took note of the fact that there was a restriction placed on the transfer of the land and, in fact, for the first ten years, there was a complete prohibition of transfer by sale and it was because of that reason that the Tribunal had adopted the value of Rs. 15,136 instead of Rs. 3,37,792 adopted by the GTO. This conclusion of the Tribunal was a conclusion of fact and no question of law arose. Note: The case was decided in favour of the assessee. CASE REVIEW CWT v. Smt. Promila Bali [1983] 141 ITR 942 (Delhi) followed & relied upon. CASES REFERRED TO CWT v. Smt. Promila Bali [1983] 141 ITR 942 (Delhi). R.C. Pandey for the Applicant. K.P. Bhatnagar for the Respondent. JUDGMENT Kirpal, J.-The question involved in this case pertains to the valuation of a plot of land which was gifted by the respondent to his grandson.…

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