Per Shri A.V. Balasubramanyam, Judicial Member - The short point involved in this appeal by the Revenue is in regard to deduction claimed, !towards gift-tax liability.

2. A certain P. Subbammal, the assessee in this case, had some jewellery. She made a gift of the same to her grand-daughter Beena on 10-11-1982 by delivering possession of the same. In respect of that gift, the impugned gift-tax assessment was made where the value of the jewellery was fixed at Rs. 3,41,000. Allowing the basic exemption of Rs. 5,000, the taxable gift was determined at Rs. 3,36,000.

3. The assessee (donor) had preferred an appeal raising two important points. One was in regard to valuation. That was not pressed by the learned representative before the Commissioner (Appeals). The finding in this regard has, in these circumstances, become final. The second point was in regard to deduction of gift- tax liability. It is the claim of the assessee that the gift-tax liability is an allowable deduction. On this issue, the first appellate authority held as hereunder:

".... I hold that the, GTO was not correct in his view on the allowance of the tax payable as a liability in, determining the value of gifted p