COMMISSIONER OF GIFT TAX Vs. MUTHUKUMARASWAMY MUDALIAR

JUDGEMENT

(1.) THE common question that has been referred in these two cases by the Tribunal to this court for its opinion is as follows :

(2.) THE assessee in the first case gifted an extent of five grounds in Mount Road to one V. Kandaswamy and the assessee in the other case has gifted 5 grounds and 392 square feet of land at 36-B, Mount Road, Madras, to one C. Srinivasan. In the documents of gift, the properties gifted have been valued at Rs. 30,000 per ground. THE gift deeds also provided that the gift tax payable will be borne by the donees. THE Gift-tax Officer in relation to the above two assesees has valued the lands on Mount Road at Rs. 60,000 in one case and at Rs. 50,000 in another case. In the gift-tax proceedings, when the assessee's attention was drawn to the wealth-tax assessments, the assessees contended that the properties gifted had no right of way from Mount Road and, therefore, the value given in the wealth-tax proceedings for the lands on Mount Road, cannot be adopted for the lands gifted. THE Gift-tax Officer, however, rejected the contention and valued the properties on the basis of the value adopted in the wealth-tax assessments, i.e., the property which is the subject matter of gift in T.C. No. 438 of 1978 was assessed at Rs. 50,000 per ground and the property which is the subject matter of gift in T.C. No. 60 of 1978, at Rs. 60,000 per ground.