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Section 6, read with section 26 of the Gift-tax Act, 1958 - Valuation of gifts - Assessment year 1967-68 - Assessee (deceased) gifted certain shares to four trusts - Legal representatives of deceased valued said shares at Rs. 6,48,520 - GTO, however, determined value of said shares at Rs. 8,64,695 - Tribunal, on basis of report of two values appointed in arbitration, valued shares in question at Rs. 5,92,112 - Revenue, on instant reference, contended that Tribunal could not fix value of shares lower than value as returned by assessee - Assessee, on other hand, contended that since revenue did not raise said point before Tribunal, it could not be said to arise out of order of Tribunal within scope of section 26(1) - Whether since revenue had not raised aforesaid question before Tribunal and thus Tribunal had no occasion to consider it, it could be concluded that instant reference itself was incompetent - Held, yes - Whether, therefore, question referred by Tribunal could not be answered - Held, yes FACTS The deceased assessee owned certain shares of a company. During the relevant assessment year by a deed of settlement she transferred these shares to four different trusts. The legal representatives of the deceased filed returns of taxable gifts at the value of Rs. 6,48,520. The GTO did not accept the valuation returned and determined the value of the shares in question at Rs. 8,64,695. On appeal, the AAC confirmed the GTO's valuation. On second appeal, the Tribunal was of the view that the question of disputed valuation should be referred to the arbitration of two valuers one of whom should be nominated by the assessee and the other by the GTO. Such arbitrators were appointed and by their report, the shares were valued at Rs. 5,92,112. The Tribunal held that the value of the shares might be taken at Rs. 5,92,112. In the circumstances of this case, the assessee would be entitled to the full costs of the valuation. On instant reference the revenue contended that the assessee all along having contended that value of the shares in question was Rs. 6,48,520, it was not open to Tribunal to fix the value at a lesser figure, namely, at Rs. 5,92,112, and even according…

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