1998 (6) TMI 62

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..... is court, the Income-tax Appellate Tribunal referred the following question for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law and fact in determining the value of the property gifted at Rs. 1,00,000 ?" The facts in brief, are that the assessee, a medical practitioner, made a gift of a portion of a building, known as Pulikka .....

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..... at part of the gifted property had been let out to Lakshmi Vilas Bank on a monthly rent of Rs. 2,000 in 1977. The area of such portion was 2,500 sq. ft., whereas the area of the gifted property was 2,860 sq. ft. The Commissioner of Gift-tax, taking into consideration the rental of Rs. 2,000 of a portion of the property let out to Lakshmi Vilas Bank, estimated the rental of the gifted property at R .....

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..... by the donor and that if such steps were taken, the rent would have been much higher than Rs. 808 per month. This is how learned standing counsel submits before us that monthly rent of Rs. 808 cannot form the basis for estimating the value of the gifted property. He submits that the appellate authority was right in taking into consideration the rent of the portion of the property, which was let o .....

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..... gift or the rent fetched by a portion of the building or the rent which was settled between the donee and the tenant after ten months of the date of gift, should form the basis for estimating the value. Since the gifted property was under tenancy right from 1965 up to the date of the gift, we see no good reason to take into account the rent fetched by a portion of the building or the rent which wa .....

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..... re, therefore, of the view that the Appellate Tribunal rightly rejected the basis followed by the appellate authority. We do not see any good ground to interfere with the view taken by the Appellate Tribunal in the matter. In the result, we do not see any infirmity in the view taken by the Appellate Tribunal. The aforementioned question is, therefore, answered in the affirmative, that is in favou .....

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