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Issues:
1. Validity of reopening of assessment under GT Act, 1958. 2. Taxation of deemed gift contrary to facts and law. 3. Confirmation of levy of interest. 4. Merit of addition made on account of deemed gift. Validity of Reopening of Assessment under GT Act, 1958: The appeal was filed against the order of the CIT(A) regarding the reopening of assessment under the GT Act, 1958. The District Valuation Officer determined the fair market value (FMV) of a plot owned by the assessee at a higher amount than declared by the assessee, resulting in the difference being treated as a deemed gift. The assessment was reopened, and the GTO brought the amount of deemed gift to tax. The Tribunal found that there was a valid reason to believe in the escapement of gift based on the DVO's report. The Tribunal dismissed the ground challenging the validity of the reopening. Taxation of Deemed Gift Contrary to Facts and Law: The appeal also contested the taxation of a sum as a deemed gift, arguing that it was contrary to facts and law. The CIT(A) confirmed the addition made by the GTO on account of the deemed gift. However, the Tribunal noted that in a previous appeal by the assessee related to a similar addition under the IT Act, 1961, the CIT(A) had allowed the claim and deleted the addition. The Tribunal, citing a previous order, held that the determination of gift solely based on the DVO's report without considering inadequate consideration was unsustainable in law. Consequently, the Tribunal allowed the appeal of the assessee on this issue. Confirmation of Levy of Interest: The appeal raised concerns about the confirmation of the levy of interest by the CIT(A). However, the judgment did not provide detailed analysis or findings specific to this issue. Merit of Addition Made on Account of Deemed Gift: Regarding the merit of the addition made on account of the deemed gift, the Tribunal found that the addition was not justified. The Tribunal emphasized the need to establish that a property was transferred without adequate consideration to deem it a gift. It was highlighted that the valuation by the DVO was not based on the provisions of the GT Act but on the land and building method. Since the higher valuation for computing capital gain had already been deleted in a previous appeal, the addition for the deemed gift was deemed unsustainable. Therefore, the appeal of the assessee was allowed in part on this issue. ---
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