9911796707
TMI Blog2003 (4) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the appellant for admission of appeal also. This appeal is moved under section 27A of the Wealth-tax Act. The following questions are raised for our consideration: "1. Whether, on the facts and in the circumstances of the case, the transfer / nomination of membership of the Jaipur Stock Exchange Ltd., from the appellant to Shri Pawan Kumar Jain amounts to gift and is liable for tax under the provisions of section 4(1)(a) of the Gift-tax Act, 1958? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in assessing the value of said transfer of membership of the JSEL on July 21, 1989, at Rs. 4,50,000, treating the said transfer only on November 11, 1991, and on the basis of auction value in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admitted as a member of JSEL on March 11, 1986, on payment of admission fee of Rs. 2,500. On August 21, 1989, the appellant entered into an agreement with Pawan Kumar that he will transfer the membership to him when it is transferable, as minimum five years are required, within which he cannot transfer the membership. The membership was finally transferred on December 24, 1991, at Rs. 50,000. The Gift-tax Officer during the course of assessment noticed that one of the memberships of the stock exchange was auctioned in 1991 at Rs. 8,71,000, therefore, he has taken the market value of the membership at Rs. 8,71,000 as on November 11, 1991, and taxed the difference of the amount at which it was transferred and the market value, as deemed gif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no dispute that there was a transfer of the membership. There is a transfer of the membership by the appellant and his membership has been transferred at the consideration of Rs. 50,000. When a valuable right or any interest in the property, which has some value in terms of money, if that right has been transferred for the consideration less than its market value, that attracts the provisions of clause (a) of sub-section (1) of section 4 of the Gift-tax Act. 50 far as the market value is concerned, learned counsel for the appellant has not disputed the market value of the membership, which has been finally taken by the Tribunal. Considering the law involved in this case and on the facts, the view taken by their Lordships in this case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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