TMI Blog1972 (12) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ermits and adding them to the value of the buses - - - - - Dated:- 6-12-1972 - Judge(s) : G. RAMANUJAM., V. RAMASWAMY. JUDGMENT The judgment of the court was delivered by RAMANUJAM J.- One Appavoo Pillai made a gift of three buses to his son, Vimalan, the assessee, under a registered settlement deed dated June 17, 1967. Under that deed the value, shown for the three buses was Rs. 20,000. The Gift-tax Officer found that the written down value of the buses on the date of the transfer was Rs. 31,688. He, therefore, estimated the value of the buses at Rs. 31,688. In addition he also estimated the value of the route permits on which the buses were plying at the time of the transfer at Rs. 75,000 and computed the gift-tax payable on tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Wealth-tax Act applies to gift-tax proceedings as well. On the applicability of its decision rendered under the Wealth-tax Act to the gift-tax proceedings, the Tribunal has stated that the definition of "asset" in section 2(e)(1)(v) of the Wealth-tax Act excludes any interest in property where the interest is available to an assessee for a period not exceeding six years from the date the interest vests in the assessee and it is with reference to that provision the route permits which enured only for a period of three years were held to be not coming within the definition of "asset" under that Act, and that in the Gift-tax Act there being no such provision that decision had no application. On the question of the quantum of the estimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the three buses as : Rs. Bus No. MDS. 3127 running between Dharmapuri to Erode via Salem valued at 10,000 Bus No. MDS. 2723 running between Salem to Thali via Dharmapuri, Osur valued at 5,000 Bus No. MDS. 2776 running between Thali to Salem via Osur, Dharmapuri valued at 5,000 and there is also the following provision : " Hereafter you shall own and enjoy the buses with all absolute rights and be entitled to run the said buses in the routes operated by them and enjoy the income derived therefrom......I shall apply to the Regional Transport Officer, Salem, to change the permits in your name." Having regard to the above extracts from the gift deed it is not possible to say that the buses alone had been transferred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the transferor to the assessee. Then coming to the question as to whether the route permits had any value, we have to say that in this case as per the terms of the gift deed the buses have been transferred along with the route permits and that the value of the buses along with the route permits should be taken to be the value of the gifts. As pointed out by this court in G. Vijayaranga Mudaliar v. Commissioner of Income-tax : " Neither the provisions of the statute nor the rules framed thereunder actually prohibit the receipt of consideration for a transfer of permit. It may be that the competent authorities under the Motor Vehicles Act may not allow a permit to be transferred for value lest it should encourage trafficking in permit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontends that, if the gift is taken to be that of buses along with the route permits, then it is not possible for the Gift-tax Officer to value them separately as has been done in this case. The learned counsel refers to the decision in State of Kerala v. P. P. Hassan Koya. In that case the Supreme Court said that the method which is generally resorted to in determining the value of the land with buildings especially those used for business is the method of capitalization of return actually received or which might reasonably be received from the land and the buildings. Reference was also made to a decision of this court in Gouthamchand Galada v. Commissioner of Wealth-tax where this court held that, in respect of a property consisting of lan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
