Case: Commissioner of Gift Tax, West Bengal Vs. Sardar Ajaib Singh

The assessee who is an individual made a gift of 350 ordinary shares of the face value of Rs. 1, 000 each in M/s. Indra Singh and Sons Pvt. Ltd. on December 13, 1957, to his daughter, Smt. Rupinder Kaur. As the assessee was not able to produce any quotation in respect of the market value of the shares of that company, theOfficer for the purpose ofassessment valued those shares at Rs. 4, 282 per share on the basis of the valuation adopted by theOfficer for the assessment yearbeing the break up value computed on the basis of assets and liabilities of the company as disclosed by theas on March 31, 1957. In computing the net value of the assets of the company, the assessee wanted theOfficer to make certain deductions ; one such deduction asked for by him was the estimated tax liability of Rs. 9, 50, 000. TheOfficer refused to make that deduction, as the same was not provided for in theThe Appellate Assistant Commissioner confirmed the decision of theOfficer. On a further appeal, the Tribunal came to the conclusion that that tax liability was required to be taken into account in computing the value of the assets of the company. But that liability was covered by the existing reserve, advance tax paid and refund to which the company was entitled under section 18(5) of the

Reasoning: This finding of the Tribunal is essentially a finding of fact, and it is not shown that that finding is in any manner vitiated. That being so, the ratio of the decision of this court in Kesoram Industries case is not attracted.This question we have discussed in greater detail in the assesseesappeals (Civil Appeals Nos. 2485 and 2486 of 1966) in which we have delivered judgment just now