Law:

Section:

Section 2 (xii) of the Gift-tax Act, 1958 - Gift - Assessment year 1967-68 - Gift of buses were made to assessee - Gift deed recited that buses had been transferred along with route permits - Requisite permission from transport authority for transfer of said route permits in name of assessee was subsequently obtained on joint application filed by transferor and transferee - Whether value of buses along with route permits should be taken to be value of gifts - Held, yes FACTS One 'P' made a gift of three buses to his son, the assessee, under a registered settlement deed. Under that deed the value shown for the three buses was Rs. 20,000. The GTO found that the written down value of the buses on the date of transfer was Rs. 31,688 and he, therefore, estimated the value of the buses at Rs. 31,688. In addition he also estimated the value of the route permits on which the buses were playing at the time of the transfer at Rs. 75,000 and computed the gift-tax payable on that basis. Before the AAC, it was contended that the route permits had not been transferred as they could not be transferred without the order of the Regional Transport Authority, and that, therefore, the value of the buses alone should be taken into account for computing the gift-tax. The AAC rejected this contention on the ground that the routes had actually been transferred in favour of the assessee on the joint application of the transferor and transferee, and that the assessee in fact had carried on the business of plying the buses on the routes in question and enjoyed the income there from. The Tribunal upheld the order of the AAC. On reference: HELD The recital in the gift deed clearly showed that it was not only the buses but also the right to ply them on particular routes that had been conveyed under the documents. Section 59(1) of the Motor Vehicles Act provides that a permit shall not be transferable from one person to another except with the permission of the transport authority which granted the permit and shall not without such permission operate to confer on any person to whom a vehicle covered by the permit is transferred any right to use that vehicle in the manner authorized by the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492