Bona fide family arrangement and gift-tax: factual finding on genuineness did not raise a substantial question of law.

A transfer of property to an assessee's second wife was examined in the context of an asserted family arrangement and alleged gift-tax liability under the Gift Tax Act. The Tribunal treated the arrangement as bona fide, and the court noted that whether a family arrangement is bona fide is a question of fact. Because that finding rested on factual assessment, it did not by itself create a question of law, much less a substantial question of law for appellate interference. The transfer was therefore treated as part of a bona fide family arrangement, no substantial question of law arose, and the appeal was held not maintainable.

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Issues: Whether the transfer of property to the assessee's second wife pursuant to the asserted family arrangement attracted gift-tax under Section 2(xii) of the Gift Tax Act, 1958, and whether the finding that the arrangement was bona fide gave rise to any substantial question of law.

Analysis: The transfer was claimed to be made to secure the second wife's position within the family arrangement. The Tribunal had found that the arrangement was bona fide. The question whether a family arrangement is bona fide is one of fact. Such a factual finding does not, by itself, generate a question of law, much less a substantial question of law, for appellate interference.

Conclusion: The finding that the transfer formed part of a bona fide family arrangement stood on facts, no substantial question of law arose, and the appeal was not maintainable.

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