TMI Blog1995 (5) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... 10th Sept., 1991 under s. 16(1) of the GT Act, 1958 (for short 'the Act') to bring to tax the deemed gift. In response thereto, the assessee submitted a return of gift-tax on 29th Jan., 1992 declaring taxable gift at nil. 3. During the course of assessment proceedings the AO discussed the issue of deemed gift with the authorised representative of the assessee. It was stated before him that none of the provisions of the GT Act were applicable to the facts of the assessee's case and, therefore, the GT proceedings may be dropped. The AO did not agree with the submissions of the authorised representative of the assessee. He brought to tax the deemed gift of Rs. 8,04,200 representing the difference between the actual sale price and the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO and he has nowhere in the order given the basis for holding that the consideration received by the appellant was inadequate which was much less than the market price prevailing in the market. He has, as I have said above, relied on the valuation report of the Government Valuer. Based on this report acquisition proceedings were initiated which were later on dropped. Since the AO has not brought any other material on record which show that the sale consideration was inadequate, proceedings under the GT Act cannot be sustained and accordingly the assessment under consideration is cancelled." The Revenue is aggrieved by the above decision of the CGT(A) and is in appeal before the Tribunal. 5. Shri Jagdeo, the learned Departmental Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion report of the Government Valuer which formed the basis of initiation of the GT proceedings, the AO did not provide a copy of the said valuation report. Shri Rinwa vehemently argued that on perusal of the assessment order it would be revealed that the AO has not established that the transaction was for inadequate consideration or that the transfer was not bona fide. In the absence of such a finding, the AO was not justified in taxing the deemed gift as he did which has rightly been cancelled by the CGT(A). 6. We have considered the rival submissions and perused the material placed before us. It is now well settled that in order to invoke the provisions of s. 4(1)(a) of the Act it is necessary for the AO to show that the property has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO wanted to rely on the said valuation report of the Government Valuer for the purposes of GT proceedings before him, he should have supplied a copy of the report to the assessee to make the effective representation before him. It is not forthcoming from the assessment order that the AO had supplied a copy of the Government Valuer's report to the assessee, he had also not recorded any reason as to why he considered the fair market value as reflected in the said report as correct. The Revenue has also not been able to controvert the stand of the assessee that there was no relationship between the assessee transferor and the transferees. No material has also been brought on record to give an inkling that the transaction was not bona fide a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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