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TMI Blog1972 (12) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... rmits on which the buses were plying at the time of the transfer at Rs. 75,000 and computed the gift-tax payable on that basis. The matter was taken in appeal by the assessee to the Appellate Assistant Commissioner. It was contended by him that the route permits had not been transferred as they could not be transferred without the order of the Regional Transport Authority, and that, therefore, the value of the buses alone should be taken into account for computing the gift-tax. The Appellate Assistant Commissioner rejected this contention on the ground that the routes had actually been transferred in favour of the assessee on the joint application of the transferor and transferee, and that the assessee in fact had carried on the business o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act there being no such provision that decision had no application. On the question of the quantum of the estimated value of the route bus the Tribunal felt that the assessee did not produce any evidence to show that the actual value of the bus routes was anything lesser than what the Gift-tax Officer had fixed, that the Gift-tax Officer had based his estimate on a comparable basis and that, therefore, there is no reason to interfere with the estimate made by the Gift-tax Officer. At the instance of the assessee the Tribunal has referred to this court the following question : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that Appavoo Pillai was liable to be taxed under the Gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extracts from the gift deed it is not possible to say that the buses alone had been transferred to the assessee and not the bus routes. The above extracts clearly show that it is not only the buses but also the right to ply them on particular routes that have been conveyed under the documents. Section 59 (1) of the Motor Vehicles Act provides that a permit shall not be transferable from one person to another except with the permission of the transport authority which granted the permit and shall not without such permission operate to confer on any person to whom a vehicle covered by the permit is transferred any right to use that vehicle in the manner authorized by the permit. Section 61 provides for transfer of the permit on the death of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act may not allow a permit to be transferred for value lest it should encourage trafficking in permits. Buses have little value shorn of their permits to ply on particular routes. It is an open secret that when buses are transferred, the consideration paid by the purchaser of the vehicles is only commensurate with their earning capacity which is intimately connected with the routes on which they operate. But nevertheless no transferor admits having received any consideration for transfer of the permits and the transferee also never acknowledges that he paid any amount for annexing the routes along with the buses. We must observe that this pretence of non-payment of consideration for transfer of permits is nothing short of sheer hypocrisy. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Commissioner of Wealth-tax where this court held that, in respect of a property consisting of land and buildings, the land and the building cannot separately be valued and if it is possible its capitalised value should be adopted based on the actual income yielded by the property. In this case, though the Gift-tax Officer has added Rs. 75,000 as the value of the routes to the written down value of the buses, it can only be taken that the officer felt that the value of the three buses with the route permits should be increased by Rs. 75,000. We, therefore, consider the estimate made by the Gift-tax Officer at Rs. 1,06,390 as a composite one for the three buses along with the route permits. There is no material placed by the assessee in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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