9911796707
TMI Blog1981 (6) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... t there was dispute about the actual outlay on the building and it was finally arrived at an agreed figure of Rs. 1.8 lakhs for purposes of income-tax assessments. The income from this property was, as a result of a settlement under Voluntary Disclosure Scheme, adopted at Rs. 24,000 per annum. The assessee had let out that part of the property excluding the shops to M/s. Vasudevan Co., a firm consisting of his three sons and son-in-law by a lease deed dt. 5th Nov., 1970 for a monthly rent of Rs. 300. For gift-tax purposes the GTO took the view that the difference between Rs. 24,000 arrived as property income in assessee's hands for income-tax purposes and that the rent received from M/s. Vasudevan Co. and the six shops during each year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the amount charged and such value ultimately admitted at Rs. 24,000 per annum in respect of the self same property. The difference between the amount charged and such value, in his opinion, was a concession which squarely get caught under s. 4(1)(a). The ld. Counsel, on the other hand, contended that there was no concession at all. He pointed out that the assessee was getting little more than Rs. 7,000 from the shops as well as from M/s. Vasudevan Co., for the entire property. Leasing out the Kalyanamandapam part of the building after excluding the shops at Rs. 300 per month, he contended was not a concession. He filed the statement of account of M/s. Vasudevan Co. and the assessment orders in their case for all the years showing that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e GT law, it can, as contended in the additional grounds, be considered only on 15th Nov., 1970 and again 15th Nov., 1973. The taxable events, if any, have occurred on these dates. The assessments for 1972-73, 1973-74 and 1975-76 as made cannot stand for the simple reason that there has been no taxable event in respect of the lease during the three years. As for an asst. yr. 1971-72 and asst. yr. 1974-75, we have to consider whether the lease agreement implies any concession constituting inadequate consideration within the meaning of s. 4(1)(a) of the GT Act. We are of the view that s. 4(1)(a) does contemplate transfers of property for inadequate consideration. A lease for a period of three years does involve transfer of rights in an immova ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the assessee has let out to his close relatives and has agreed for a much larger value for income-tax purposes, though on rental basis, we fix the rent of the position let out to M/s. Vasudevan Co. at Rs. 6,000. This will mean that the annual concession was about Rs. 2,400 per annum. The gross value for all the three years as on the date of agreement 15th Nov., 1970 can therefore be taken as Rs. 7,200. The assessment made by the GTO for this year at Rs. 7,600 is not for off the mark though he considered this part of the year only and not for the three years as ought to be done. We would therefore restore the gift-tax assessment for asst. yr. 1971-72 fixing the gift value at Rs. 7,600. The assessments for 1972-73 and 1973-74 in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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