Kerala H.C : This is a petition filed by the Revenue, under s. 26(3) of the GT Act, 1958, to direct the Tribunal to refer the three questions of law, formulated in para 7 of the original petition for the decision of this Court. The respondent is an assessee under the GT Act.

Counsel Appeared

P.K. Ravindranatha Menon & N.R.K. Niar, for the Petitioner

K. S. PARIPOORNAN, J.:

This is a petition filed by the Revenue, under s. 26(3) of the GT Act, 1958, to direct the Tribunal to refer the three questions of law, formulated in para 7 of the original petition for the decision of this Court. The respondent is an assessee under the GT Act.

2. The short facts necessary for the disposal of this original petition are this : The GTO initiated proceedings against the assessee in respect of the gift made by him of a rubber estate measuring 30.71 acres in Kanjirappally. The transfer was effected by a document dated March 30, 1978, relevant to the asst. yr. 1977-78. The consideration shown was Rs. 35,000. The GTO held that the value shown is very meagre and determined the value of the rubber estate at Rs. 1,84,260. It was affirmed in appeal. In second appeal before the Tribunal, it was contended that about 3,000 rubber trees in the estate were sold in April, 1978, and so in determining the value of the estate, only the land value should be taken. The Tribunal fixed the value of the trees at Rs. 60,000 and deducted the said sum of Rs. 60,000 from the entire value of the estate fixed by the GTO at Rs. 1,84,260. The value of the land was fixed at Rs. 1,500 per acre and the value of the entire estate was fixed at Rs. 1,05,000 and after deducting a sum of Rs. 35,000 reflected in the document , the value of gift was fixed at Rs. 70,000. On a perusal of the order of the Tribunal dated November 6, 1985, it does not disclose the basis for fixing the value of the land at Rs. 1,500 per acre. Moreover, there is no definite material to show as to when the 3,000 rubber trees were cut and removed from the estate. It is not evident from the appellate order of the Tribunal as to why the valuation fixed by the GTO is stated to be arbitrary or the value of the rubber estate fixed by the CIT (Appeals), even for the year 1980-81, at Rs. 6,750 per acre is not acceptable. The Tribunal has not indicated any definite reason for any one of these factors.

3. We are of the view that from the appellate order passed by the Tribunal dated November 6, 1985, the following question of law does arise for consideration : “Is not the valuation of land by the Tribunal at Rs. 1,500 per acre most unreasonable, arbitrary, unsupported by any material and based on surmises and conjectures ?”

4. We are of the view that the said question of law does arise out of the order of the Tribunal and direct the Tribunal, Cochin Bench, to refer the said question of law, for the decision of this Court, along with a statement of the case, within three months from the date of receipt of a copy of this judgment.

The original petition is allowed.

[Citation : 177 ITR 205]