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Issues Involved:
1. Justification for revising the value of the gift from Rs. 47,000 to Rs. 90,500. 2. Validity of the reassessment under Section 16(1) of the Gift Tax Act (GT Act). Issue-wise Detailed Analysis: 1. Justification for Revising the Value of the Gift: The sole dispute in this appeal is whether the Gift Tax Officer (GTO) was justified in revising the value of the gift from Rs. 47,000 to Rs. 90,500 in the reassessment for the year 1970-71. The assessee, an individual, gifted the ground floor and the land of property No. F-40, Green Park, New Delhi, to his son. Initially, the value of the gift was estimated by the assessee at Rs. 47,000, and this value was accepted by the GTO under Section 15(1) of the GT Act on 31st August 1971. However, based on the wealth tax assessment, which valued the entire property at Rs. 1,38,660, the GTO revised the value of the gift to Rs. 90,500 in January 1973. 2. Validity of the Reassessment under Section 16(1) of the GT Act: The assessee contended that the GTO had already scrutinized the return and accepted the value of the property at Rs. 47,000. The subsequent belief that the taxable gift had escaped assessment or was under-assessed was merely a change of opinion, and thus, the reassessment under Section 16(1)(b) of the GT Act was invalid. The Appellate Assistant Commissioner (AAC) upheld the GTO's action, stating that the reassessment was based on the information regarding the correct value of the property gifted, as determined in the wealth tax assessment. The learned counsel for the assessee argued that the wealth tax proceedings could not be the basis for the gift tax valuation. The property was purchased for Rs. 22,000, and the cost of construction was shown as Rs. 62,000, totaling Rs. 89,200. The fair market value declared at Rs. 47,000 was reasonable and accepted by the State Sub-Registrar. The GTO had no jurisdiction to reopen the assessment as no new information came into his possession. The Tribunal considered the matter and concluded that all relevant facts were before the GTO during the original assessment, and no new facts came to his possession. The wealth tax returns were already filed before the GTO when he completed the assessment under Section 15(1). The original assessment was made without requiring the presence of the assessee or any additional evidence. The subsequent wealth tax assessment did not constitute new information under Section 16(1)(b) of the GT Act. The reassessment was based merely on a change of opinion, which is not a valid ground for reopening an assessment. The Tribunal referred to several judgments, including those from the Calcutta High Court and the Supreme Court, which held that a mere change of opinion cannot justify reopening an assessment. The Tribunal found that the GTO had all the necessary information during the original assessment, and the reassessment was invalid as it was based on a new look at old facts rather than new information. Conclusion: The Tribunal allowed the assessee's appeal and quashed the reassessment made under Section 16 of the GT Act. The reassessment was deemed invalid as it was based on a change of opinion rather than new information. The appeal was allowed, and the original assessment value of Rs. 47,000 was upheld.
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