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2019 (5) TMI 412 - AT - Income TaxTaxable gift - assessment u/s 15(2) of the Gift Tax Act - Valuation to determine the ownership of the property - Owner of the gifted property - actual value of the property - Valuation by DVO - assessee, late Smt.Fathima Rahim executed a deed settling 94 cents of land along with building in which Fathima College of Pharmacy is housed in favour of her son, who is the legal heir of the assessee - HELD THAT:- Land and building at Survey No.3308/1&3 of Kilikolloor village, Kollam in which the Malik Dinar Trust running the Fathima College of Pharmacy was actually owned by the assessee Mrs.Fathima Rahim and not by the Malik Dinar Trust. This apart, in ground number 2(5) of the appeal, the assessee has also agreed to the fact that the land and building therein are her own and not of the said Trust. As the ownership is proved now, transfer of this captioned property through a deed of partition without executing a valid gift deed entered into on 20.04.1995, to Mr.Azad Rahim, the assessee's son and legal heir shall necessarily be considered for taxation under the Gift Tax Act as deemed gift by virtue of the provisions of section 4(1)(c) of the Gift Tax Act. By virtue of the said section, where there is a release, discharge, surrender, forfeiture etc in property by a person, the value of such release, discharge, surrender, forfeiture etc to the extent to which it has not been found to the satisfaction of the Assessing Officer to have been bonafide, shall be deemed to a gift made by the person responsible for release, discharge, surrender, forfeiture etc. Considering all the above, no infirmity in the decision of the Assessing Officer has taken to bring to tax the value of the land and building amounting to ₹ 37,04,000/- which in turn been gifted to the assessee’s son / legal heir, as determined by the Valuation Officer of the Department and accordingly, the same is confirmed. Decided against assessee.
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